Title Company's Failure To Discover Lien Leaves First Time Homeowner Facing Foreclosure Over Prior Owner's Debt

In Highlands Ranch, Colorado, KDVR-TV Channel 31 reports:

• Brandi Hager just bought her first home 6 months ago, made every payment, but now she's facing foreclosure over someone else's debt. "I haven't been sleeping. I haven't been able to take my mind off of it." Brandi just found there's a $9,000 lien on her property that belongs to the previous homeowner, and unless she pays it, her family could lose their home. The mortgage company, Sterling Mortgage, says it thought the property was free and clear or any liens or debts or the company wouldn't have sold it to her. Sterling Mortgage says the title company, National Real Estate services, should have found the lien and notified Brandi before the sale.

For more, see Family could lose home over title company's mistake. title insurance legal issues