I am buying a House, Unknown tax lean?

We are supposed to be closing on monday, and when the morgage officer sent the papers to the Title place, they said the owner (my mother-in-law) had a tax lean on it. She didn't know anything about it. She is a very honest woman; credit score of 783. They had just built a new house this year, and I am suprised it didn't come up then. Any suggestions? Could this actuly be a mistake, or is there going to be a problem?

Yes and Yes,
It could be a mistake, and if it is not fixed, it will be a problem.
These mistakes do happen often. It is usually do to human error such as wrong addresses or lost payments. You need to get together with the title person and locate the problem. Then fix it as soon as possible. If it is correct, you may have to pay the lean off to take control of the home. At worst, they could start proceedings to take the home.

Contact the tax office in your area. I'm sure it's county or city taxes. They should be able to answer any questions. In the case of your m-i-l, it was probably an error made by the tax office.

Unfortunately, if a tax lien showed up, it is more than likely valid. However, if it is more than 10 years old and not been reinstated, then the statute of limitations is over. Of course, you did not mention what "type" of tax lien she has. Most title company's can do a social security number lien search. If this is a matter of mistaken identity, then this will prove such. However, if the lien search is done with your mother-in-laws social security number and it shows to be valid, then she will have to pay the lien at closing. If there is not enough equity for her to be able to payoff the home and the tax lien, then you cannot proceed with the purchase unless she is willing to bring the monetary difference to the closing table. I wish you the best of luck!

Go directly to city hall. If the city itself originated the tax lien, they would have info on it. There must be a clear title to close!

I would ask the closing company to double check with the county that the entry is on the correct property. The lien will need to be paid at closing. Now whether you take care of it, or ask your mom to give you money doesn't matter. If you pay it off, you won't be able to close the deal.