We found out on Monday that a lien was place against our house 5 years ago. We are in a ARM and went to refinance to a fixed rate that is how we found out about this lien, we knew nothing prior to Monday. We are taking out equity in our house Can we use this to pay that lien off? I have a bad feeling about this but we are hoping for the good. If you ask me I see it as a deceptive practice against the company for not letting us know.

But anyway what is the possibility of us being able to use some of the equity for this bill, it is only 2200.00, but 2200.00 I don't have right now.

Help!!

At the closing you have a check issued to the lien holder to satisfy the lien. No problem at all.

For the compnay to have placed that lien means they had to have a judgement against you. Were you unaware of this judgement? What is the debt all about.

We were taken to court, but nothing was said that a judgement was against us at all. We were just told to go in the hall way and talk to the company to set up a payment and that was it. It was my Husbands credit card. From 5 years ago.

Scott I hope that you are right, everything including our house is counting on this.

Thanks

Did you setup a payment? Did you adhere to it? Sounds like the attorney conned you and went back into the court and got a judgement. But if you agree you owe this money, then just arrange to pay it at closing. The loan closing will be probably be managed by a rep of the Title company. Inform them prior to the closing that you want to satisfy the lien from the proceeds of the refinance and they will handle it.

We told them what we could afford to pay per month and they didn't seem to have a problem with that, and that is all we heard. Two months later we decided to file a Chapter 13 and put them in it, but they chose not to file, then we heard nothing else until Monday. The Bank is at a stand still, not really knowing what to do, she was suppose to talk to the underwriter. So do we call the bank and tell them we want to use a portion of the equity to pay this lien?

Yes, the bank will have a rep conduct the closing. This may be a bank employee or an agent of the Title company. Doesn't matter, they will contact the lienholder, get a payoff balance and will have a check made out at the closing for you to sign.

Can they make us pay interest on this for the 5 years? With us not even having knowledge of this lien?

That's a different question. Its certainly possible. Whether you had knowledge of the lien or not, you knew the debt existed. However, I think a lien like that has to be for a specific amount. Do you know what the lien actually says?

Well first we thought the debt was included in our Chapter 13, because we filed them, and they chose not to file, we had no clue that a judgement went in there favor, we received no paperwork whatsoever saying anything else.

Nope I haven't seen the paperwork at all, the person we are working with at the bank has told us that it says, the judgement went in their favor instead of my husband, the amount, and the document number and the date they did this. That is all we know, so today I called the company to get the dollar amount to make sure it matches what the lien says, and they sold it to another company who will give me no information. That is where we are at.

If you filed for bankruptcy and they were listed as a creditor then there should be no judgment currently. Gather up copies of the paperwork from your bankruptcy and get it to the title company.

But they filed the lien before the bankruptcy. Now the kicker is, is that the person who has the lien on the house has sold it to someone else, now we are thinking why should we have to pay when they no longer own it.

Any help or ideas would be great!

Thanks

Because when they sell a debt the lien is an asset that goes with it.

Hi Scott got another question for you. You know I told you about the lien on our property.

Yesterday we sent this company proof that the debt was paid in full in 2005. This company is doing everything it can to not talk or cooperate with us. So any way when they got the faxes, the supervisor started feeding us a line of bull well we have to do this and that and then it has to go here and there is there anyway we can sue them for what they are doing, they told us to give them proof and that we have.

Also how can it be legal for the creditor to put a lien on our property turn around a month later get it back then sell it to another company and that company files under our bankruptcy and get paid? How can that be? We are trying our best to keep our cool and get these people to release that lien so we can get on with it, but they don't want to cooperate

Thanks

Hello d:

You're all over the board here. First you owe it, then you included it in your bankruptcy, then you didn't cause they didn't file (?? ), then you want to pay it out of the proceeds, then you don't, then you're dealing with collection agency with some paperwork that you didn't tell us about...

We can't help with that stuff...

excon

I agree with excon. Your story leeps changing. Now you claim you paid off the debt and have proof.

If you do and they are dragging their heels in relasing the lien, and you suffer monetary damages because of that, then you have grounds for a suit.

I am just as confused as everyone else. I explained that we found out Monday that the lien was on our property. Then we found out that the company we owed the debt to, took back the debt from the attorneys that sued us, then when they took it back, they sold it to another company a month later. Then we found out that when they sold it to the one company that company filed under our Chapter 13 and got paid in full. We just found this out.

Sorry for the confusion!

So we contacted our lawyer we had with the bankruptcy he is the one who gave us the proof that we had paid it. So now we are calling the company who has the lien on our property with the proof that it has been paid and asking them to release the lien and they are just causing us all kinds of grief, so we are at a stand still on what we are and need to do to get this corrected.

I am sorry once again for the confusion, any advice would be great

Wait, if you listed them in the Chapter 13, and you got a final discharge of this debt, then you don't owe them the money. If they choose not to responsd to their notice of the hearing they are still discharged at the final discharge. They don't have an option not to be included in the chapter 13, they can decide not to respond and not get paid, but they are still discharged

Talk to your attorney, it sounds like they filed a judgement illegally and you must not have defended the judgement showing they were listed at the bankrutpcy.

I think you can force them to release the lien by proving this.
Talk to your attorney before you pay anyone