QUESTION
Is it lawful for these two liens to be placed on my home?
Asked on May 16th, 2013 on Bankruptcy - Michigan
More details to this question:
I took out an SBA loan several years back of $8000 when my husband was alive for necessary home improvements. He passed away, had no life insurance, and I was on disability and could not afford to pay the payments. I defaulted on the loan and was sue by the SBA. I recently tried to refinance my house to save money monthly and make repairs to my house that is in dire need. I am paying off the amount I owe the SBA with this loan as well. During the loan, process I found out the SBA has placed 2 liens on my home. I have tried to call them and explain what I was doing and they will not cooperate and now will not return my calls at all. The loan officer will not continue with the loan until one of the liens is removed. I am stuck as my house is literally falling in.
3 ANSWERS
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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I need more information. Are the liens for the same loan? Can you use the repair money to make a good faith payment which will still leave you enough money to make the important repairs? Are you willing to file for bankruptcy to get rid of the loans?
Answered on May 17th, 2013 at 1:02 PM
If the SBA sued you and obtained a judgment against you, they can place a judgment lien on your home. If you file bankruptcy, and have less than $40,000 of equity in the home, you can remove that lien from the property.
Answered on May 17th, 2013 at 1:02 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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If you clearly indicate to the loan officer that the loan is intended to also pay off the SBA liens (and it does) then you should not have any problem. Its the title company's problem to get a payoff letter
Answered on May 17th, 2013 at 1:01 PM