trying to sell estate

[jodim83]

I need advice! My mother passed in 2008, we thought everthing was settled and taken care of. I lived in her home (that should have been paid for) for 2 years. Now we have a buyer. The lawyer thats handling the deed transfer told us there was a 25000 lien on the house, but wasn't helpful in explaining anything. I talked with the bank today, they say my mom took out a equity loan in 2001 for 25000, and filed bankruptcy in 2005. She was very organized, we have all her bank statements, cancelled checks, deeds, taxes for the passed 20 years. Can't find anything exepted a loan for 300.00 that was paid back. She never stopped paying her medical bills and we can't find any records of payments on the equity from 2001 to 2005. Wasn't like her to do this and not tell anyone, and she ALWAYS paid her bills. I don't know what to? Where can I find proof or what law office handled the case? Would she have been able to keep her house after filing bankruptcy? Why hasn't the bank contacted us before? If it was discharged are they still entitled to the money? Hoping someone has been through this before and can help me, I honestly don't know if I'm smart enough to handle this and really can't afford attorney fees? Any advice would be greatly appreciated!

[newbie2]

If the bank has a local branch you could go in and talk to them there. If your mom filed for bankruptcy and didn't reaffirm the equity line, then yes the debt is discharged. However, the bank still has the lien. Since it has been 3 years I'm a bit surprised that the bank hasn't sent any notices or foreclosed on the property.

Since you have a buyer for the home the title company handling the sale could also be helpful in obtaining the note your mother signed for the equity loan. Ask them if they can find a copy of it for you, along with the lien (mortgage) that was recorded. If it is indeed a valid lien then you would have to pay that out of the proceeds of the sale in order to release the lien.

[AngelinaCatHub]

Get onto PACER and pull all the paperwork your Mother had in her BK. The lien will be recorded at the local Courthouse so get a copy of it. Ask the bank for all her payment history. If this was a line of credit, the lien should be satisfied with what she owes not the whole amount of the max value of the credit line. Yes you have much to do, but it should be easy. Just gather info and don't become intimidated by the banks but ask them to cooperate and do the same for them.

You simply wish to cure her affairs, not make money from them. Is KY a homestead state? They could not take her house if it is. ergo, the lien. I'm afraid if the lien is valid, even if the debt was discharged the lien is binding and must be satisfied unless a Judge nulls it. Find out when the lien was made and if it was during the automatic stay, then it could be turned around. It's a shame to find out surprises like this, but one of the things about the truth at all times, you don't have to live it like you must a lie. A lie always comes to the surface. 'Hub

[SunshineGal]

The note won't be recorded, just the mortgage and it will show the full amount of the credit line, not what is actually owed. But it will show the signature, so you should be able to tell if your Mother signed it. Good luck, sorry you have to go through all of this.

[HHM]

If it is a valid security interest, YES, they are still entitled to payment notwithstanding the bankruptcy.

If push comes to shove, you may need to go to court and demand the company prove the loan (e.g. loan application, etc).

It's a little unclear from your post, do you know your mother filed BK or not? (to verify, go to PACER, http://www.pacer.gov/)