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:
- State: South Carolina
Answer:
A judgment lien is created when a court grants a creditor an interest in the debtor's property. Whether the manufacturer can reclaim the home depends on several factors, including if the loan created a security interest in the home and if a lien was filed against it before the sale.
If the loan used the home as collateral, the manufacturer may have rights to reclaim it if the loan is not repaid. Collateral can include real estate, like a mortgage. If the property was sold via a quitclaim deed, any existing liens would transfer with the sale. However, if no lien was filed before the sale, the manufacturer would need to pursue other assets owned by the debtor.
A judgment lien can be filed if a court grants a monetary judgment to the creditor, allowing them to secure payment by placing a lien on the debtor's property. If unpaid, the creditor may enforce the judgment through property sale to satisfy the debt.
We recommend consulting a local attorney to review all relevant facts and documents.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.