QUESTION
Do I have to pay that lien off to buy the house and how should I proceed?
Asked on Jun 06th, 2013 on Bankruptcy - Florida
More details to this question:
I am buying a house from a guy whose bankruptcy has been discharged but the bank that is holding the mortgage hasn’t foreclosed yet. The house has two liens on it. Primary mortgage holder has agreed to short sale price and released the lien on the property so the sale could go through. Second lien is in place on the property because of a truck that no longer in the owner’s possession and that bank put a lien on his house for $11,000.
7 ANSWERS
Unless the lien was avoided as part of the bankruptcy, its still a perfectly enforceable lien against the house and it has to be paid.
Answered on Jun 11th, 2013 at 3:19 AM
If you want to acquire a clear title, you will have to get this lien released. Whether you have to pay it off in full or can get a discount is an issue to be negotiated.
Answered on Jun 10th, 2013 at 12:12 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I have no idea where you live, therefore cannot answer your question. Each state has different laws.
Answered on Jun 10th, 2013 at 12:12 PM
Deborah F. Bowinski
Depending upon when the truck lien was recorded, the seller may be able to get it voided through his former bankruptcy case. He may also be able to settle the matter for a smaller amount since the debt may have been part of his bankruptcy discharge. While the lien will need to be dealt with, it really should be the sell we'd problem/responsibility rather than yours.
Answered on Jun 10th, 2013 at 12:11 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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It is up to the holder of the lien whether or not to release the lien without full payment. They can require full payment or release the lien for a partial payment.
Answered on Jun 10th, 2013 at 12:11 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Either the second lien will have to be paid off or you will have to agree to keep paying on the second mortgage. The bank is not going to agree to not get paid on its loan.
Answered on Jun 10th, 2013 at 12:10 PM
Sanford M. Martin
There are various options for handling these transaction. The property can be transferred to you through a short sale. The present owner could avoid a foreclosure through a DIL, and the property can be transferred to you.But, important is any agreements, contracts, notes, mortgages, etc. which are part of the closing. You should have an attorney or real estate finance person to advise you regarding the specific transaction. Your inquiry does not state all the facts necessary to advise you regarding your situation.
Answered on Jun 10th, 2013 at 12:10 PM