What rights do we have on our mortgage if it was fraudulently done?
We bought a new construction home in July of this year. We found out this week that there are three liens on the house. The builder went bankrupt and didn’t bother to pay anyone. Here’s the fraudulent part – TWO of the liens are from before we bought the house. We have the Owner’s Affidavit that says the title is free and clear, which it obviously wasn’t. Not only that, the builder knew there were liens on our property and several other properties on our street. We also do not have title insurance – even though we wanted it and NEVER waived it. We have a VA loan, which requires a home warranty. The closing paperwork says the builder purchased one for us, but they didn’t. I’m so mad at these people. I would like to just get out of the house completely. If they sold us this house under these circumstances, can’t we claim the contract null? The Owner’s Affidavit says that the signer (the builder) acknowledges that the affidavit is to induce us to buy the home. If we had known that there were liens, we would not have bought it. I also wonder if the lawyer wasn’t in on it since the title search should have shown the liens. Sorry – babbling. Please advise ONLY if you know this area. Thanks.