Do we have a legal road to pursue if our former bank placed 2 liens on our property when we refinanced our loan?

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Do we have a legal road to pursue if our former bank placed 2 liens on our property when we refinanced our loan?

We took out second mortgage and then refinanced it 4-5 years ago. The bank has since gone under. The new bank informed us when we tried to refinance with them that the old bank never consolidated the 2 liens. The new bank wants us to come up with the money to get rid of one of the liens ( about $60,000). We cannot afford that, and I don’t feel we should have to based on the old banks bad practices. Just to be clear, we have 2 loans with 3 liens.

Asked on August 11, 2012 under Real Estate Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not you have a legal basis to bring some legal action with respect to the liens placed on your home concerning loand by your former lender based upon what you have written is best addressed to reading the loan documents that you signed including the promissory note or notes as well as the trust deeds. Your answer will lie with those documents.

I suggest that you consult further with a real estate attorney to discuss such documents and what your legal recourse would be.


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