What happens to a lien?

[campiona]

Years ago I co-signed for a mobile home for a close friend. She had a problem, was sued, lost, and ended up with a $10,000 lien on the property. She then walked away from the home, leaving it in the hands of a family that has been late in making payments every single month for two years. My credit has been toasted.
What happens to the lien if eventually the bank puts the home in this family's name and finally gets my name off? There would be no money exchanged. The lady that got the lien will be making no money on the sale either.
How can it be legal for a lien to be put against a property with my name on it when I had nothing to do with their problem? My name is first on all the papers.
Needless to say, I will never again co-sign for anyone as long as I live, I don't care what the circumstances are. It has taken my FICA score from 750 to 650 and caused me to lose an excellent mortgage opportunity.
This has been bothering me for a long time. I don't think the people paying for it now are aware of the lien. Any info posted on this subject will be very much appreciated.

 

[HomeGuru]

Years ago I co-signed for a mobile home for a close friend. She had a problem, was sued, lost, and ended up with a $10,000 lien on the property. She then walked away from the home, leaving it in the hands of a family that has been late in making payments every single month for two years. My credit has been toasted.
What happens to the lien if eventually the bank puts the home in this family's name and finally gets my name off?
**A: the lien can be discharged if not renewed within the statutes of limitations period or can be kept on the property then renewed if not paid off. So most likely it must be paid off.
If the property is foreclosed upon and there is not enough from the slaes proceeds to pay off the lien, the lien would automatically be discharged.
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There would be no money exchanged. The lady that got the lien will be making no money on the sale either.
How can it be legal for a lien to be put against a property with my name on it when I had nothing to do with their problem? My name is first on all the papers.

**A: even if you are not responsible for the lien, the fact that you are a joint owner of the property allows the lien to be filed on the property against the other joint owner.
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Needless to say, I will never again co-sign for anyone as long as I live, I don't care what the circumstances are. It has taken my FICA score from 750 to 650 and caused me to lose an excellent mortgage opportunity.
This has been bothering me for a long time. I don't think the people paying for it now are aware of the lien. Any info posted on this subject will be very much appreciated.

**A: apparently you did not understand your rights with respect to being a co-signor and joint property owner.
I suggest you hire an attorney and file a partion suit so that the property can be sold and this headache eliminated.

 

[campiona]

Home Guru

Thanks for taking the time to answer my post. I will look into the renewal of the lien and a partition suit.
This board is lucky to have someone like you to answer their quistions.
Thanks again.
Happy New Year.

 

[HomeGuru]

Re: Home Guru

Thanks for taking the time to answer my post. I will look into the renewal of the lien and a partition suit.
This board is lucky to have someone like you to answer their quistions.
Thanks again.
Happy New Year.

My response: thanks for your positive comments and Happy New Year to you too.
I answer most quistions and inquisitions.

 

[J. Ducaine]

if the people "paying" on the loan do not own the property "on title" then you own the property - SELL IT! the family probably cannot refinance because they're using your credit in the first place. Also, if your FICO only went from 750 to 650, then youre doing pretty good; a 650 is well within the "good credit" territory. They're arrangement is between them and your co-owner; you were not privy to their arrangement, correct? Why are they making payments? Do they have a contract or a grant deed; AITD doc's or assumption arrangement? Ifg any of this exists, it is a violation of your loan agreement - SELL IT!