Ok, 8+ years ago, my SO bought the house that we live in now. When she bought the home, one of the conditions that was involved in the transaction is that the seller left the water softener system that was in the home, and in turn he got cashback at closing to payoff whatever he owed on it. Fast forward to now. On 12/31/03, a representative from the water softener company showed up and left a note on our door stating that we had their equipment and he needed to set an appointment for them to come pick it up. Today, I received a letter in the mail from them, and on the front of the envelope, it says "Important information, open immediately". So I open it, and this is what it says: To: Current homeowner (obviously they don't know our name). We have attempted to contact you regarding the water softener and purifier at this address (our address). Unfortunately, these items are under lien with XXXXXXXX Water and have not been paid for. Therefore, we need to either make arrangements to retrieve the equipment from the home or make arrangements for the purchase of said equipment if you prefer to keep and continue to enjoy the benefits of it. Please contact us as soon as possible and make us aware of your preference in this matter. Sincerely, XXXXXXX Phone # Your thoughts on this? To clarify, there is no miranda or anything on either of the letters and I am taking this as an attempt to collect a debt, with other obvious implications.
Did you see this 'lien' when you closed? If you did not, then maybe the title insurance searc missed it. If the water company really can prove they have a lien on your property for the amount owed on their equipment, then whatever title insurance company you used to make sure the property you were buying was 'lien free' is responsible for this debt. Your SO needs to find the closing paperwork and call the company she closed with. If the seller was given the money to pay this at closing they will have the proof you need to turn the water company on to the seller. My DW2B is a title examiner and she says water softeners are tricky, cause the company has a lien on the equipment, not on your home. Either way it is the closing companies responsibility to sort it all out. That is what you paid them for. My title insurance company missed that my property had deed restrictions. They will be paying my HOA dues for the next 30 years.
Yeah, I think I will, cause my SO swears up and down that the seller walked with cash at closing. Thanks
Another consideration would be the Statute of Limitations. 8 years without payment is a long time and the water softener company just realized it? If you have owned the house for 8 years and obviously haven't made a payment, I would check your state's Statute of Limitations. Even liens become worthless over time, especially if no UCC3 was ever filed. Check for a UCC3 filing with your County Clerk (it would be under the prior owner's name). If there's no UCC3 then you can tell the water softener company to go blow bubbles, and they should go look for the prior owner. Your position with them would be "If you forgot to file the UCC3, how am I supposed to know about your lien?" If the UCC3 was filed then the Title Insurance Company blew it, because they allowed the seller to take the money without seeing to it that all prior liens had been satisfied, and your Title Insurance is on the hook.
