Will we have to pay lien to clear the title? 11 Answers as of May 20, 2015

After filing bankruptcy, we signed papers to reaffirm an equity loan against our house. However we never heard from the company again and the lawyer never answered our inquiries about it. On our BR papers it says "amended" beside that loan. We are now selling that home and that is showing as a lien against the title. It has been 8 years.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You unfortunately owe this debt. The equity loan was and is a lien against the property. Kinda crappy of them but they can sit back and wait for you to sell.
Answer Applies to: California
Replied: 5/20/2015
Stephens Gourley & Bywater | David A. Stephens
If the lien was not expunged as part of the bankruptcy you would have to pay it to provide marketable title to the buyer.
Answer Applies to: Nevada
Replied: 5/20/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Sounds like the Court approved the reaffirmation agreement, and the lien is viable. I would pay an experienced BK lawyer to look at your BK file and advise you.
Answer Applies to: Colorado
Replied: 5/19/2015
Ronald K. Nims LLC | Ronald K. Nims
Yes, you'll have to clear the lien. If you can find someone to buy a house with a lien against it, they'll pay you pennies on the dollar. Check with a local attorney what the statute of limitations is on the lien. You may be able to have it judicially removed quickly.
Answer Applies to: Ohio
Replied: 5/19/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
If you signed a reaffirmation agreement and it was properly filed in the bankruptcy court then that debt was not discharged and you remain legally obligated to pay it in full. If the reaffirmation agreement was not properly completed then the debt may have been discharged but the dollars owed are a separate thing from the lien securing the property. The lien must be dealt with before you are able to transfer title, and how it is dealt with may be determined by the reaffirmation agreement. You will have to contact the lender and determine what will be necessary to get them to release their lien.
Answer Applies to: Colorado
Replied: 5/19/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    It doesn't matter whether you reaffirmed the equity loan or not. Because it is a lien you agreed to put against your property when you obtained the loan, it remained after you filed bankruptcy unless you lien-stripped this mortgage in a chapter 13.
    Answer Applies to: Nevada
    Replied: 5/19/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Are you saying that your bankruptcy lawyer from 8 years ago refused to do what he could to deal with the second mortgage lien? That is bad behaviour in my book. The lienholder's silence for many years does not amount to forgiveness of the lien. The debt secured by the lien was presumably discharged by the bankruptcy, but the lien was not affected unless, during the bankruptcy case, you had some grounds for challenging the secured status of that creditor. Your best bet may be to try to negotiate some kind of settlement with this second lien-holder. IF, HOWEVER, there is no value n your home to support the second lien, you could seek a declaratory judgment in state court that the lien is without value. Consult a lawyer who knows something about both bankruptcy and real estate. In Madison and Milwaukee, at least, they are not rare. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 5/19/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Whether you reaffirm or not it is still a lien that would have to be paid upon sale of the house.
    Answer Applies to: New York
    Replied: 5/19/2015
    Wink & Wink
    Wink & Wink | Gigi Wink
    Reaffirmation has nothing to do with this issue. The only way to remove a HELOC or second mortgage in bankruptcy is through a 506 motion in Chapter 13. This is only available in certain circumstances. Without that, the loan will remain attached to the property unless paid.
    Answer Applies to: Colorado
    Replied: 5/19/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Whether you signed the reaffirmation agreement or not your bankruptcy did not remove the 2nd mortgage as a lien. It must be paid to remove it as a lien.
    Answer Applies to: Michigan
    Replied: 5/19/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    I would want to review the details but generally, even if the equity line was "discharged" that would have simply prevented suing you on the note, but would not have invalidated the lien.
    Answer Applies to: Michigan
    Replied: 5/19/2015
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