Foreclosure after bankruptcy- pending divorce

[phoenixrisin]

[AngelinaCatHub]

Well you have a "different" type of challenge. I believe you can get those liens removed and my advice is to go back to your bk lawyer as he would know about this. The lien has no strength as the lien reference no longer is valid. They need to give you a "release of lien" by the court or otherwise. 'Hub

[AngelinaCatHub]

Check this out and research it from here. 'Hub

[Mensa1]

1) First off, neither of you should sign a warranty deed to the other, even IF the liens did not exist. The deed of choice here is Quit Claim Deed. With a QC Deed the Grantor, which is the one conveying away their interest, is not warranting that they have an interest at all but whatever interest they do have is being transferred by the QC Deed. In this case you know you have an interest and it will transferred just as effectively with the QC Deed, but it eliminates anyone (former spouse or otherwise) from coming after you to offset any claim against the title.

2) Probably not a correct thought. Just deal with the liens before any transfer of property. Shoudln't be a big deal, depending what the liens are for.

3) What are the liens for? If for debts that were discharged in the Bk, and the fact that you have NO equity, then likely the judgment liens could easily be stripped away from the property. If they were for items not discharged in the Bk then they are tough to remove; (e.g. taxes, student loans). But this might be best addressed before any transferring is done by either spouse, at least know the answer of whether it is a potential problem or not.

4) If you both walk away and house is foreclosed it shouldn't matter one bit. You have NO responsibility for repayment of that mtg any longer. Not a dime. If they reported that against you it would be a violation of FDCPA.

5) Hubby is all wet, he is not suing you for any that becsause you aren't signing any warranty deed, remember. And even if you did default, NO impact to him personally on his credit. Sure you name would be in public record but no credit impact cause you don't owe the $$$ anymore.

6) Doesn't matter whether you are liable for the mtg pymt or not, it is simply "Housing Expense". It costs money to live whereever you live; it matters not if it is being paid for a mtg or rent. Consider you pymt as rent, and that is what his support should be considered upon. How's that go: Nah-nah, na-na-nah...

Biggest element here is do nothing until you address how to resolve the liens. When deetermined then one of you QC the house to the other. Then the most important part, live happily ever after!!!!!!!!!!

[phoenixrisin]

#3 - One lien is from a credit card, one is for a loan. Both were judgement liens granted prior to Ch7 BK. Both original debts (and of course collections after) were all included in BK.

The judge allowed us to include the mortgage in the BK because it was so far underwater. I don't remember anything about exempting the home, I think because it was included in BK?

So, original BK lawyer is going to charge $375/ea "motion". I am assuming this would be the "lien stripping"?

Also, if we both walk away, the liens can't "follow" me, can they, and be attached to proprty I might buy 5 years from now?

Thanks!

[Mensa1]

So, original BK lawyer is going to charge $375/ea "motion". I am assuming this would be the "lien stripping"?

Also, if we both walk away, the liens can't "follow" me, can they, and be attached to proprty I might buy 5 years from now?

Thanks!

Decent deal from Atty for motion for strip liens. Except that making one motion is x amount of work; making two motions is NOT xx amount of work. But I know why the price is set as it is. Maybe some negotiation could be done here, (like $ 500-550), if you plan on moving ahead with lien stripping. Afterall, Atty knows where you are financially. Just a thought.

Correct, those liens are for properties before filing Bk and have no effect in the future. They are now attached to current assets prior to Bk but unquestionably should be stripped with the planned filing without an issue, based on the type of liens and debt from which they originated.

[phoenixrisin]

Correct, those liens are for properties before filing Bk and have no effect in the future. They are now attached to current assets prior to Bk but unquestionably should be stripped with the planned filing without an issue, based on the type of liens and debt from which they originated.

So, If my husband and I both walk away from the house and let it foreclose, and I don’t have the liens stripped, what happens then? They can't be attached to any newly purchased property in the future? They just sit there until they expire or something?


How long does it normally take to have liens removed?

Thanks!

[Mensa1]

The liens are only liens because you owned property at the time of the Creditor obtained a judgment, then they attach to anything that you own like real property. The Bk discharges the debt owed to that creditor so the effect upon the judgment is it renders it moot. But the lien (claim against that asset only) survives.

However, judgments that became liens on property owned at that time and prior to filing Bk, continue to exist on those properties. As a result the creditor could accelerate or collect on that lien against the property, if equity exists, but not against you personally. It takes the motion to the court to strip the lien since the debt has been rendered uncollectable and where no unprotected equity exists in the liened property.

Timing for removal of the lien depends on the venue, but revolves around giving the judgment creditor notice and time to respond to the motion, like 30 days for an answer if there is any reason why the lien should not be stripped. most jc's aren't going to respond following a discharge from Bk. If there was unprotected equity they would have made that claim as part of the Bk case, so it is really a foregone conclusion for lien stripping except for odd circumstances. Anyway, 60-90 days on avg is my best guess for removal of lien.