Can a Home Manufacturer Put a Lien on a Home After It Is Sold?

Full question:

A customer has purchased a modular home which has been erected on their land In South Carolina. They currently have a construction loan and are in the process of closing a permanent loan with a lender. It has came to their attention that the manufacturer has not yet been paid in full for the cost of the home. Can the owner of manufacturing company take possession of the home and remove it from the customer's land? The home is permanently attached to the property and is real property. The owner of the manufacturing plant also owns the company which is operating as the general contractor on the project. The two companies are separate.

• Category: Judgment Liens
• Date: 04/07/2025
• State: South Carolina

Answer:

A judgment lien is created when a court grants a creditor an interest in the debtor's property, The answer will depend on all the facts involved, such as whether the the loan created a security interest in the home and whether a lien was filed against the home before it was sold.

The answer will depend in part on whether the loan used the home as collateral to secure the loan. Collateral is an asset that a borrower agrees to give up if he or she fails to repay a loan. Collateral that is pledged to secure a loan or debt is usually funds or personal property as distinguished from real property, but technically collateral can include real estate, as in a mortgage. Collateral also provides the secured party with the assurance that if the debtor should go bankrupt he or she may be able to recover the value of the loan by taking possession of the specified collateral instead of receiving only a portion of the borrowers property after it is divided among all creditors.

If the property was sold by quit claim deed, any liens on the property already filed transfer with the sale. If a lien wasn't filed prior to the sale, then the creditor would need to go after property or income currently owned by the debtor. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." If the judgment remains unpaid, the judgment debtor may request that the court place a lien on the judgment debtor's property, such as bank accounts or real property owned, to secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. We suggest you consult a local attorney who can review all the facts and documents involved.