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Can a lien be placed on a house AFTER it has sold due to seller's legal/financial issues?

  • Thread starter Thread starter /u/shannoodlez
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/u/shannoodlez

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My husband and I are currently purchasing a home in NJ. While the title search was clear, through this process we learned the seller is on a GSA exclusion list for healthcare fraud that took place in 2005 and that he was in preforeclosure when the house was listed. Through Google searches we also learned he has had at least one lawsuit for approximately $98k against him and the business he owns that was filed in January 2024. I'm uncertain if this was resolved. Given his record, my guess would be this man will continue to have ongoing legal and financial issues.

While there are currently no liens against the property, is it possible for a lien to be placed on the property after we close? Would we be able to prove he is no longer the owner and have it cleared or would we need to pursue legal action against him to resolve it?

submitted by /u/shannoodlez
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Can a lien be placed on a house AFTER it has sold due to seller's legal/financial issues?
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