QUESTION
Is it legal to sell a property that has a lien?
Asked on Oct 23rd, 2012 on Bankruptcy - New Jersey
More details to this question:
I filed bankruptcy on a mobile home in 2003 and the creditor has a lien against my property. When I called them to discuss the lien, they now tell me that, it was sold to Brunswick Mutual.
10 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on May 21st, 2013 at 1:45 AM
It is legal and common practice for creditors to sell liens to other companies. When you file for bankruptcy you are no longer required to pay but the lien on the property remains and must be paid before you can sell the property.
Answered on Oct 30th, 2012 at 10:27 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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The lien simply means that the debt is secured by the mobile home; if you don't pay as promised on the mobile home loan, they have the legal right to repossess the mobile home and assess any deficiency, plus attorney's fees, that they incur as a result of a judicial sale. You can certainly sell the mobile home with the lien on it, however, that lien must be satisfied with the sale proceeds, otherwise the lender won't release their lien on the mobile home title.
Answered on Oct 29th, 2012 at 7:29 PM
It is legal to sell property that has a lien, but to provide a clear title, the lien must be satisfied, which is to say, paid off. But it sounds like your real question is whether the creditor can sell the lien to someone else, and yes, this is a perfectly legal & routine practice.
Answered on Oct 25th, 2012 at 11:00 PM
Yes, that may be legal if the assignment was proper.
Answered on Oct 25th, 2012 at 10:44 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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They sold the loan to Brunswick and that is perfectly legal. Loans are sold on the open market all the time.
Answered on Oct 25th, 2012 at 10:04 PM
Daniel James Wilson
You can probably sell the mobile home but the lien must be satisfied.
Answered on Oct 25th, 2012 at 10:02 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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Yes, as long as the sales agreement clearly states that the buyer is aware of the lien and takes the property subject to the lien. The sale will not relieve you of any personal responsibility for the debt that the lien secures. Also, the lien holder and or its assignees can still liquidate the mobile home to satisfy the lien.
Answered on Oct 25th, 2012 at 10:01 PM
Yes, it is legal for a creditor to sell its claim.
Answered on Oct 25th, 2012 at 9:48 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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It may have been sold subject to the lien, or they may be the lien holder and sold it. Further it they are the first holder, then they can as well.
Answered on Oct 25th, 2012 at 9:42 PM