Property Lien

[Illini]

What is the name of your state? Illinois

I divorced and remarried and ultimately changed the deed on the property I retained in the divorce from my ex-husband's and my name to my current husband's and my name. Since these changes were made, I was later contacted and then sued on a past credit card debt that I had incurred in my name only from when I was married before and a judgment was ordered against me.

I recently discovered the attorney has placed a lien against our property (wasn't notified it was done). In looking at the deed, it is held in both our names as "tenancy by the entirety". In researching further, I have found differing opinions on whether the lien on our property is valid since my current husband was not a party to the credit card debt or the lawsuit and is now a holder in interest in our property.

Opinions seem similar that the sale cannot be forced as long as the deed is held in this manner and it is our primary residence but it isn't clear on whether the lien can be placed at all since it "encumbers" the property.

Can anyone shed some light on this? If the lien is valid at this time, what happens if I die? The reason the deed was transferred as tenancy in the entirety was because it was my understanding that the property would automatically transfer to my husband without worry about probate, etc. If I die, would the lien be removed since my husband isn't responsible for this past debt?

What if we sell the property later...would half of the proceeds be given to my husband and any remaining lien would be taken from my half of the sale over my exemption amount, which I think I read is now $15,000?

If the lien isn't valid in these circumstances, how can it be removed?

Thanks for any assistance.What is the name of your state?

 

[seniorjudge]

What is the name of your state? Illinois

I divorced and remarried and ultimately changed the deed on the property I retained in the divorce from my ex-husband's and my name to my current husband's and my name. Since these changes were made, I was later contacted and then sued on a past credit card debt that I had incurred in my name only from when I was married before and a judgment was ordered against me.

I recently discovered the attorney has placed a lien against our property (wasn't notified it was done). In looking at the deed, it is held in both our names as "tenancy by the entirety". In researching further, I have found differing opinions on whether the lien on our property is valid since my current husband was not a party to the credit card debt or the lawsuit and is now a holder in interest in our property.

Opinions seem similar that the sale cannot be forced as long as the deed is held in this manner and it is our primary residence but it isn't clear on whether the lien can be placed at all since it "encumbers" the property.

Can anyone shed some light on this? If the lien is valid at this time, what happens if I die? The reason the deed was transferred as tenancy in the entirety was because it was my understanding that the property would automatically transfer to my husband without worry about probate, etc. If I die, would the lien be removed since my husband isn't responsible for this past debt?

What if we sell the property later...would half of the proceeds be given to my husband and any remaining lien would be taken from my half of the sale over my exemption amount, which I think I read is now $15,000?

If the lien isn't valid in these circumstances, how can it be removed?

Thanks for any assistance.What is the name of your state?

1. When did you get divorced?

2. When was the lien filed?

3. When did you get married?

 

[Illini]

1. When did you get divorced? January, 2004.

2. When was the lien filed? January, 2006.

3. When did you get married? September, 2004.

The QC changes were completed in August, 2005, after my ex-husband paid off the mortgage for the other property that he retained in our divorce (the mortgage was only in my name [a house I had purchased before he and I had married] and he was reimbursing me for the monthly payments until he was able to obtain a loan and pay the mortgage under my name off).

The judgment was issued in December, 2005. There were no lawsuits pending at the time the Q/C changes were processed.

Thanks for your reply.

 

[seniorjudge]

1. When did you get divorced? January, 2004.

2. When was the lien filed? January, 2006.

3. When did you get married? September, 2004.

The QC changes were completed in August, 2005, after my ex-husband paid off the mortgage for the other property that he retained in our divorce (the mortgage was only in my name [a house I had purchased before he and I had married] and he was reimbursing me for the monthly payments until he was able to obtain a loan and pay the mortgage under my name off).

The judgment was issued in December, 2005. There were no lawsuits pending at the time the Q/C changes were processed.

Thanks for your reply.

The best thing I can tell you to do is have a local title company run a title search on your place.

They're called different things in different areas: ownership and encumbrance report, letter report, informational report, etc.

They are cheap ($100-200) and will tell you what you need to know for sure.

 

[Illini]

Does the fact that I can see the "memo" for the lawsuit when viewing my property on the county recorder's info mean that the lien affects the title? That is how I found out about it, when I was trying to obtain the Parcel Number for our house.

I thought that anything that appears under the county recorder's section there means that a lien has been attached to the title of the property. If it doesn't, how does having this memo under my property assist the attorney?

When I request the title search done, and assuming this "memo" attachment appears, is the lien against my property valid?

Thanks again.

 

[seniorjudge]

Does the fact that I can see the "memo" for the lawsuit when viewing my property on the county recorder's info mean that the lien affects the title? That is how I found out about it, when I was trying to obtain the Parcel Number for our house.

I thought that anything that appears under the county recorder's section there means that a lien has been attached to the title of the property. If it doesn't, how does having this memo under my property assist the attorney?

When I request the title search done, and assuming this "memo" attachment appears, is the lien against my property valid?

Thanks again.

Q: When I request the title search done, and assuming this "memo" attachment appears, is the lien against my property valid?

A: Yes, the report should tell you that.

 

[Illini]

Since you state that the lien on our property is valid and legally allowed to be placed regardless of how the deed is held, are you able to answer my other questions in my original post (regarding death and/or sale of property)?

Thanks for your time.

 

[seniorjudge]

Since you state that the lien on our property is valid and legally allowed to be placed regardless of how the deed is held, are you able to answer my other questions in my original post (regarding death and/or sale of property)?

Thanks for your time.

I do not have enough information to tell you if the lien is valid.

Thus, my suggestion that you have the report run.

IF the lien is valid, then it must be paid off (released or satisfied) before you (or your heirs) can do anything with the place.

 

[Illini]

Okay, will have the report run and attempt to decide how to proceed.

I'm not clear, however, on the issue that because a "memo" for a lawsuit appears under the county recorder's information linked to the property, it doesn't necessarily mean it is attached to the title of the property?

I appreciate your time, thank you.

 

[seniorjudge]

Okay, will have the report run and attempt to decide how to proceed.

I'm not clear, however, on the issue that because a "memo" for a lawsuit appears under the county recorder's information linked to the property, it doesn't necessarily mean it is attached to the title of the property?

I appreciate your time, thank you.

I have no idea what a memo means in this context.

 

[Illini]

Excerpt regarding what I am referring to:
"In filing a memorandum of judgment, Illinois Compiled Statutes requires the following: “The terms ‘memorandum’ as used in this section means a memorandum or copy of the judgment signed by a judge or a copy attested by the clerk of the court entering it and showing the court in which entered, date, amount, number of the case in which it was entered, name of the party in whose favor and name and last known address of the party against whom entered. If the address of the party against whom the judgment was entered is not known, the memorandum or copy of judgment shall so state.”

Therefore, what the attorney has done, is apparently filed with the county recorder a "memorandum" of judgment and the details as shown above appear on my property as "memo" (as opposed to QC for Quit Claim).

Does this necessarily mean a lien has been filed against the property, or does it serve some other purpose? If not a lien, then the only way to know is to have a title search done as you discussed?

Thank you.

 

[Illini]

I have looked further into the "memo" that was mentioned before, and it is a lien against the title of our property.

With that said, can anyone advise on whether or not this lien is legal under the circumstances as shown in my original post (since it apparently incumbers a property held in tenancy by the entirety and my husband had nothing to do with this debt or lawsuit)? I cannot seem to find a definitive answer, so would appreciate any opinons.

Thanks.

 

[seniorjudge]

I have looked further into the "memo" that was mentioned before, and it is a lien against the title of our property.

With that said, can anyone advise on whether or not this lien is legal under the circumstances as shown in my original post (since it apparently incumbers a property held in tenancy by the entirety and my husband had nothing to do with this debt or lawsuit)? I cannot seem to find a definitive answer, so would appreciate any opinons.

Thanks.

If the lien was filed at the time your husband quit claimed to you (i.e., you owned it by yourself) then the lien would've attached.

 

[Illini]

But it wasn't. I never owned the property by myself, in only my name...it was either in my ex-husband's and my name or in my current husband's and my name. The debt was incurred several years previously and I was the only party involved in the original credit card debt and the lawsuit.

As I stated, we were divorced in January, 2004; I remarried in September 2004. The actual QC was done in August 2005 (no lawsuits were pending) from my ex-husband/me to my husband/me as tenants in the entirety. The judgment for the credit card debt was December 2005, and the lien filed in January 2006.

 

[seniorjudge]

But it wasn't. I never owned the property by myself, in only my name...it was either in my ex-husband's and my name or in my current husband's and my name. The debt was incurred several years previously and I was the only party involved in the original credit card debt and the lawsuit.

As I stated, we were divorced in January, 2004; I remarried in September 2004. The actual QC was done in August 2005 (no lawsuits were pending) from my ex-husband/me to my husband/me as tenants in the entirety. The judgment for the credit card debt was December 2005, and the lien filed in January 2006.

When you get the title report, let us know what it says.