Lien on Property

[Samantha7476]

What is the name of your state? Colorado

Hi, I live in Colorado and am having a problem with a lien being released against my property. I refinanced my house back in April of 2003 and paid off a HELOC that I had as well during the refinance. The company that held the lien for the HELOC was sent the addendum signed by me telling them that the loan was paid off and to release the lien from our property. I continued to get statements from them showing a $0 balance and when I called them to ask why I was still getting statements since the loan was supposed to be closed, they told me that it was just an unsecured line of credit and that the lien was lifted off the property and that I could use it if I wanted to. This line of credit was not used for about a year. Then after a year I asked them if it was OK to use it and if the lien was taken off. They told me even then that it was OK to use it and that there was no lien against my property. So I did use it from time to time. My statements do not indicate anything that would make me believe that they still had the lien on my property. They just say "line of credit statement". So I had no reason to not believe what they had told me. Back in October of 2007 I checked for liens against my property and found that they are still holding it. I told them that I needed them to release the lien and have been going back and fourth with them since October of 2007. Long story short they are refusing to take the lien off because of the balance telling me that they never received the addendum.

I would like to know if there is some law that requires lenders to remove liens within a certain amount of time from receiving the addendum. The addendum was sent with the pay-off check and they did receive the check because they cashed it, so they got the addendum as well. I would also like to know if I can sue them for slander of title under these circumstances.

I do have an actual HELOC with another bank that I obtained due to the agreement that I had with this other bank. So I need this lien taken off one way or another. Our house would not sell for enough to cover two HELOC's.

If you need more information on this situation, just let me know. ThanksWhat is the name of your state?

[FlyingRon]

You probably had a cause of action UNTIL you actually borrowed on the line of credit again?

Do you or do you not have money borrowed on the HELOC? There's no way they're going to release the lien if you have money outstanding.

[Samantha7476]

Hi Ron;

I do have money out on the HELOC now because of what they had told me. They told me they did release the lien. My main issue is that they did receive a legal document telling them to release it and they didn't abide by it and then evidently "misinformed" me as they put it. There was no balance at the time they got the addendum and for about a year afterwards. Do they have a time frame that they have to release it in after receiving the addendum?

[FlyingRon]

I don't think it matters. By borrowing again on the LOC, you reaffirm the original terms.
Pay off what you owe. You're going to lose on this one.

[Samantha7476]

So the fact the they never did what they were supposed to do according to a legal agreement and had a year to do so and then lied to me about it doesn't matter?

I would hope that would stand for something in court, but if it doesn't I guess that's what I needed to know.

[Shay-Pari'e]

Originally Posted by Samantha7476

So the fact the they never did what they were supposed to do according to a legal agreement and had a year to do so and then lied to me about it doesn't matter?

I would hope that would stand for something in court, but if it doesn't I guess that's what I needed to know.

You are not understanding. Once you used your Heloc again, that is a lean against your property. Pay it off and CLOSE the account, other wise it will alway's show a line of credit.

[Samantha7476]

I do understand that part of it... They did receive the addendum when the account was paid off... They just never closed it and released the lien like they were supposed to... I just feel like my hands are tied with the situation...

[Shay-Pari'e]

Originally Posted by Samantha7476

I do understand that part of it... They did receive the addendum when the account was paid off... They just never closed it and released the lien like they were supposed to... I just feel like my hands are tied with the situation...

But you used it again, Your hands were not tied. Why use it if you are going to complain about it now?

[Samantha7476]

They told me quote "the account I am looking at is an unsecured line of credit and is in no way attached to your home. There is no lien". My statements reflected this statement as well so I had no reason not to believe them. The account number is different than the account number referenced on the addendum too... They did cash the pay-off check and applied it to my account so I know it wasn't an issue of a mis-match...

I do see your point though. I should have either had them send me that statement in writing or checked myself for liens. At that time I didn't know how to do that, but I can't plee ignorance either.

I am not arguing the facts of the situation. I am just upset that they have the right not to abide by a legal document. What's the point in having legal documents as such if companies don't need to abide by them? From what I am seeing, I presumably have no legal recourse that I can take for that regardless of weather or not the lien gets lifted.

[nextwife]

HELOC= HOME EQUITY line of credit.

A loan secured by ones equity in their home. It's not a Line of Credit Against NOTHING. The HE part comes from the HOME from which it is secured.

[FlyingRon]

They abided by the legal document. When the HELOC was satisfied, they released your lien. That didn't erase your original contract with them. When you borrowed more money on the line, they were free to reinstate the lien. You already agreed to this.

You seem to think that the fact that they released the lien once (and made some dubious verbal comments that even if they did make them have no legal standing) that any further money you borrowed from them is not secured and you're free to go ripping them off without recourse.
This just isn't so.

[Samantha7476]

Hi Ron;

My payments have always been on time with them so ripping them off has not been an issue. The lien has never been lifted of record so they didn't abide by the document. The document also said to close the account as well as lift the lien. They never did it according to the records office with the state. Since the account numbers were different and my statements reflected "line of credit" I thought they did it. They didn't though. It seems that they aren't obligated to abide by a legal document and I can't do anything about it. This is what's bothering me.

[Zigner]

Let's assume they should have removed the lien and didn't. What is the problem now? Once you borrowed against your house again, a new lien would have applied. Either way, you'd have a lien.

[Samantha7476]

I didn't borrow against my house again with that company. If I had done that, I would have applied for another HELOC with them and signed documents allowing them to secure another lien. This never happened. Can any company just slap a lien against your property without your knowledge or consent?

[Zigner]

Originally Posted by Samantha7476

I didn't borrow against my house again with that company. If I had done that, I would have applied for another HELOC with them and signed documents allowing them to secure another lien. This never happened. Can any company just slap a lien against your property without your knowledge or consent?

They didn't need to do that - they had the original HELOC to work with

The answers aren't gonna change just because you keep asking the question.