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GHodge · Mar 17, 2013, 08:12 AM

Is it legal to have a lien placed on my house in my ex-husband's name for his past debts? His name was not on my VA loan which I used to purchase the house, however, we added his name to the title once the sale went through and was complete. It wasn't on the title originally. When I divorced him I filed a quit claims deed to remove his name from the house, but while that was in the works, a lien was placed on the house. This all took place in 2006 and the lien is still on there. It shows up on his credit report but not mine. I am unable to sell my house due to this lien. Is there anything I can do to get this lien removed so I can sell my house or do I have to let my house go into foreclosure? I no longer live in the residence, due to relocating every two years with the military, and I want to get rid of the house. What options do I have if any? Thanks in advance for any advice.

Fr_Chuck · Mar 17, 2013, 08:48 AM

The name on the VA loan makes no difference,

Whose name is on the deed ( title is normally a mobile home) but was the VA loan notified when you added the name, You can not just change the deed with a loan on it, without their permission, it can cause problems with the loan.

But yes if he is on he deed, they can put a lien on home

cdad · Mar 17, 2013, 08:53 AM

If his name was on the title then they were within their rights to file a lien against it. The problem is judging from your timing that the house may be upside down? If it is then the banks may work with you on that. The only way to satisfy the lien is to pay it off either through a payment plan or through the sale of the home. Have you talked to the lienholder at all to discuss the removal of the lien ?

ScottGem · Mar 17, 2013, 09:36 AM

The lien is NOT preventing you from selling the house. It just means the lien must be satisfied before the transfer takes place. So you get him to pay the lien or you pay it from the sale. If you pay it, you can then sue him for the amount.

GHodge · Mar 17, 2013, 10:28 AM

@ Chuck - The deed had both of our names on it. He quit claimed it to me and now it's just my name on there. As far as the realty company contacting VA with the 'change', I am not sure. I will however, contact VA in thee morning to follow up on it.m

Originally Posted by Fr_Chuck

The name on the VA loan makes no difference,

whose name is on the deed ( title is normally a mobile home) but was the VA loan notified when you added the name, You can not just change the deed with a loan on it, without their permission, it can cause problems with the loan.

but yes if he is on he deed, they can put a lien on home

GHodge · Mar 17, 2013, 10:33 AM

I spoke with the lien company a few years ago and they said they weren't going to remove the lien unless the debt was satisfied. My ex-husband doesn't have the money to repay the $64,000.00 debt (credit card, reposed car, and his personal loan), and I'm NOT paying it, so it seems as though it will be there forever unless I choose to ruin my credit...

Originally Posted by cdad

If his name was on the title then they were within thier rights to file a lien against it. The problem is judging from your timing that the house may be upside down? If it is then the banks may work with you on that. The only way to satisfy the lien is to pay it off either through a payment plan or through the sale of the home. Have you talked to the lienholder at all to discuss the removal of the lien ?

GHodge · Mar 17, 2013, 10:39 AM

Yes, I've discussed the removal of the lien with the lien holder and they want their balance before they remove the lien; therefore, I am unable to sell the property.

Originally Posted by cdad

If his name was on the title then they were within thier rights to file a lien against it. The problem is judging from your timing that the house may be upside down? If it is then the banks may work with you on that. The only way to satisfy the lien is to pay it off either through a payment plan or through the sale of the home. Have you talked to the lienholder at all to discuss the removal of the lien ?

GHodge · Mar 17, 2013, 10:41 AM

I'm told by my title company I am unable to sell my house due to the lien.

Originally Posted by ScottGem

The lien is NOT preventing you from selling the house. It just means the lien must be satisfied before the transfer takes place. So you get him to pay the lien or you pay it from the sale. If you pay it, you can then sue him for the amount.

ScottGem · Mar 17, 2013, 12:59 PM

Originally Posted by GHodge

I'm told by my title company I am unable to sell my house due to the lien.

You misunderstood. A lien is an encumbrance on the property which means ownership can't be transferred until the lien is satisfied. That may be practically preventing you from selling, but not legally. At the closing, the lienholders will have to be paid before a new deed can be issued. Now, if there is not enough money to cover the liens, that may be a different story.

Originally Posted by GHodge

IThe deed had both of our names on it. He quit claimed it to me and now it's just my name on there.

Now this doesn't make sense. If the lien was placed prior to the transfer, then the transfer shouldn't have gone through or is invalid. So ownership reverts. But if the county recorded the new deed then the lien may be invalid if its against him. Since he is not an owner of the property the lien shouldn't be valid.

I suggest talking to the title company again. And making sure of the validity of the title and lien.

cdad · Mar 17, 2013, 03:05 PM

Originally Posted by GHodge

I spoke with the lien company a few years ago and they said they weren't going to remove the lien unless the debt was satisfied. My ex-husband doesn't have the money to repay the $64,000.00 debt (credit card, reposed car, and his personal loan), and I'm NOT paying it, so it seems as though it will be there forever unless I choose to ruin my credit.....

Here is what you could do. If your ex is not in a position to pay back the money. And if you have some money. Then offer to pay for him to claim banckruptcy.

That way your credit stays in tact and the lien gets removed and you both move on.

GHodge · Mar 17, 2013, 07:59 PM

Bankruptcy won't remove the lien from his credit. We've already considered that.

Originally Posted by cdad

Here is what you could do. If your ex is not in a position to pay back the money. And if you have some money. Then offer to pay for him to claim banckruptcy.

That way your credit stays in tact and the lien gets removed and you both move on.

cdad · Mar 18, 2013, 04:44 PM

Originally Posted by GHodge

Bankruptcy won't remove the lien from his credit. We've already considered that.

It will remove it from the house if it goes through. Also it sounds like either way he's going to be claiming it because of the debts. You're the one that gets the attatchment away from you without harm to your credit.