My sister and myself co-own a house that we bought with cash in 2004. I do not have any liens or debt on myself, but we found out she does. Let me explain..

In 2002 she got a judgment lien for around 1000 from Capital One (I am guessing on a credit card)

In 2003 she got a judgment lien for around 800 from Legal Recovery Inc. (Collections I am guessing)

At the end of 2003 she filed Bankruptcy (Unknown Chapter), and both got discharged.

Now I am in closing to sell this house and can't due to the 2 companies put the liens on the house in 2004. Now I am not saying they are doing anything underhanded (Although I have heard they love doing this), but I am unable to close due to it.

What can I do to get the liens off there?

I figure I can just contact the 2 companies and show then the fact it was dissolved in the Bankruptcy, and that they need to send me a "Release Lien" form to remove them.

I talked to her lawyer and she says the case may have to be opened to do some kind of motion of exemption? I told her that the house was not owned during the BK, but about a year to year and half later. And since she doesn't live there, it is not her homestead. (Sounds like she is fishing for more money)... I even tried contacted Capital One to explain to them the problem, but of course I never could find even the "Collection / Debt Department".. Kept getting the run around. So what can I do to get this done like within a few days? I am so tempted to sue both companies for costing me money, when I have nothing to do with the liens, nor are they even legal to placed on a house after being discharged. I am losing MAJOR money and the buyers are getting very upset and have set a date if its not done, I lose all money put in to the deal.

State of all this is in Kentucky..

That sucks. Your attorney should be able to get things sorted for you, or at least tell you what you need to do to get the liens removed. I'm not sure, but maybe the buyer could get title insurance to insure the liens will not affect anything.

You could maybe put something in the contract that gives you some time to get the liens removed. Since closings are typically 30+ days, that would give you a little breathing room.

I'm just guessing here, def talk to your attorney, they are the experts in these matters.

I doubt suing will work. Why do you think the liens are illegal? You can check the county clerk to see when they were filed. If they have been settled properly, you sister should start by disputing the claim on her credit report. It will take some time to get it sorted, but it may be your first point of attack.

Good luck!

Thanks for your response. After reading the liens we found out that they are unclear on who, or how to contact the companies to try and get them removed since the original owners did the typical underhanded trick most do when they find out the debt is dead. They sold it to someone, and now we have no clue who owns it. We talked to the lawyer, and they say we have to pay to reopen the case and file a motion to vacate the liens. That could take up to 3 weeks, which is stupid since she has to write up a motion, take proof the liens are not enforceable and did in fact get discharged in BK. That should take no more then a few days. She is not happy cause she knows now she will not get paid till WE get paid, meaning if she don't get them removed she gets ZILCH, but like I told her, it should have been done 8 years ago. She then only could tell me not to call her anymore, she would only deal with the person that filed for BK.. Oh well I guess I need to work on my people skills, but I can not stand people charging for a service and only 1/2 doing it. I will let you know if any changes happen..

Contact the buyer's title company. Show them the bankruptcy discharge that discharged those debts. Then ask them if you can have the amount of the liens deducted from the seller's proceeds at the closing and placed in escrow until you can have the liens removed. Then file motions to have the liens vacated.

This way you should be able to go ahead with the closing and get most of the proceeds while you're going through the steps of getting rid of the liens.

Thank you very much LisaB4657, what you suggested is what we are doing. Hope that my sister learned a lesson on making sure to keep tabs on what is attached to you, and your credit when dealing with big priced items.. :)