17 Jul Parents trying to sell their house just found out there is a lein on it that they had no idea about Need advice
So I'll try to make the long story short. My parents are under contract to sell their house and the buyer's title company just came back with a lein on the house for $20K. Apparently it is from a home equity line of credit from 1986. The bank no longer exists but we have traced the merger history back and it appears to be now Bank of America. My dad has no recollection of ever taking this loan out but said maybe he took one out just to have a line of credit for an emergency and never used it. He has no idea. He talked to his lawyer who told him don't worry the title company usually omits these kinda of things because they are so old but then later called him back and said nope the title company won't budge you are on your own to settle this.
He's heading to the bank later this week to try to find anything out but right now I'm just trying to walk my mom off the ledge as shes really upset about the whole thing. Does anybody have any experience with something like this? What can they expect to happen? How long is this gonna hold things up? Would there even be a record of an account from that long ago?
EDIT: Since a few people have asked this is NJ