Re: Bond around it...

Hmm. I haven't asked a title company to bond around something as significant as what you are talking about. The things I need bonding around are really dead issues, as in really there is no one to come to life or wake up and sue any body. You've got an active lis pendens, right? With sue happy people with money? Kind of different.

In this climate you might not find anyone to bond around this issue. So many people are suing, and they are naming everything and everybody. So for sure the title company is taking a risk. Even if you try to exempt this thing, the title company will still be on the hook for costs for just being named in the suit. If your former owners are as they say you are, they could cost everyone a lot of money. I've been doubtful of these frivolous suits, but now I've seen a few default judgments and settlements. The lenders can be pretty bad at defending themselves. As in unorganized, missing paperwork, bad arguments.

So you really do need to find a title company that will work with you. I think the withholding may work best. But please let us know if you find someone to bond around it and what terms they wanted.

One more thing: have you talked to the former owners? Do you really know what they want? Do they want the house? Do they want money? Are they being pushed by a lawyer who is family or friend? I always have to ask that because often times it's just hear-say, but not first-hand. It would be good to know directly what these people want. Just my thoughts. Kristine