Full question:
I had two loans on a home. During a Foreclosure do both loans need to be paid off before a title can be transfered to someone else? And if so what would happen if you just found out that one of the loans never got charged off but yet someone else owns the house now? It has been 3.5 years and I have just found out that I owe $35.90 on the second loan and it is now going through the process of charge off after 3.5 years. Now as I understand it I will need to wait another 3.5 years before I can even try for a loan again...is that true or do I have some possible fighting writes? Please help me.
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Michigan
Answer:
It is possible to sell a home despite a lien on the property. However, there are several types of liens, all of which could cloud the title and prevent the seller from conveying clear title to the buyer. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles. 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 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.
A deficiency judgment is allowed in the state of Michigan, which is the amount of the debt owed less the amount for the sale of the property at auction. The phrase "charged off" probably means that the creditor has written the debt off for accounting purposes as uncollectible. When a debt is charged off, you still are fully liable for payment (and will be until the statute of limitations in your state runs out), and your creditor might sue you for payment. The answer will depend on the statute of limitations for collecting credit card debt, based on which state's laws govern the agreement. If the amount owed is only $35, it may be possible to pay the debt and reach a settlement with the creditor. The answer will depend on all the circumstances involved. We suggest you consult with a local attorney who can review all the facts and documents involved.
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.
