• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Lien found at title search

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

R

rgremer

Guest
What is the name of your state? California

We are in the process of selling our home. During the title search a lien came up on the property dated two months before our Chapter 7 was filed. It has been 6 1/2 years and we are just finding out now. What do we do? We had a homestead issued to the house before filing chapter 7, does this make a difference?
What is the fasted way to fix this so we have little delay n the dsale of our home? please help, I am really stressed out and need to know what to do.

Thanks!
 


Ladynred

Senior Member
If the debt for which the lien was placed was discharged in your bankruptcy, then the lien should have been removed after your discharge.

I believe what you need to do is contact the court that granted the lien and get it removed based on your discharge. (Correct me if I'm off-base here Sr. Members )
 

HomeGuru

Senior Member
A lien is an encumbrance recorded on title and therefore is secured to the real property. It is not discharged in BK automatically.
 

Ladynred

Senior Member
Ok... but if the debt for which the lien was placed was discharged, there should be a method by which that lien can be voided. I understand it may not be automatic.. you have to go after it :)
 

HomeGuru

Senior Member
Ladynred said:
Ok... but if the debt for which the lien was placed was discharged, there should be a method by which that lien can be voided. I understand it may not be automatic.. you have to go after it :)
**A: you are getting confused between a secured debt and an unsecured debt.
An unsecured debt like a credit card account will be discharged in BK. But if the credit card company went to court for the unpaid balance, was awarded a judgement and filed a judgement lien against the property, the lien would not be discharged in BK because it is secured debt on the property similar to a mortgage.
Now if the lien amount was paid off or in some fashion settled, then the lien would be released off title to the real property.

In the writer's case, it must be determined what the lien is for and whether it was paid off. I highly doubt that it was paid off and therefore remains on title and will not be released until it is paid off. So if the sale of the property is going to close, escrow must satifsy the lien in order to give clear title to the Buyer.
 
R

rgremer

Guest
The title search is showing a abstract of judgement no lien to the property. What does this mean?
I can';t get a hold of the courts to find anything out. It is 6 yrs old and in archives and i am running out of time. If it takes it away I will settle w/ the credit co.
What is the fastedt way so we can put this behind us?
 

Ladynred

Senior Member
What you've got is apparently still a lien. Here's a definition:


"An Abstract of Judgment puts a lien on any land, house, or other
buildings the debtor owns in the county where the abstract is recorded. Record the abstract in all counties where the debtor may own property. If the property is sold, the debt will be paid out of the proceeds of the sale.
An Abstract of Judgment will also put a lien on property the debtor may buy in the future and prevent the debtor from refinancing any property until the debt is paid."

Sounds pretty ugly actually... you may be stuck. I read somewhere that your attorney doing your bankruptcy could have had the lien stripped.
 
R

rgremer

Guest
I called the county controllers office and there is no lien showing against the property. I don't have a problem paying what I owe if this gets us free from this problem. It wasn't a whole lot of $$. So what you are saying this can be taken care of through the creditor and title co. I do not have to re-open this case make this a long process. I appreciate everyones advise. I am just a step by step kinda person and need all details. I guess I am anal that way. Plus I have no idea what I am doing. Thanks
 

Ladynred

Senior Member
You're way beyond the point of reopening your bankruptcy case. You can keep that can of worms closed :)

If you can pay the lien-holder what you owe them, then the lien would be released and you'd be home free :)
 

bigun

Senior Member
I'm confused. Was the debt that resulted in the judgement {that gave rise to the lein} included in your bk?
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top