Can CC company put a lien on our home?

hillbillibette · Joined: 26 Feb 2009 Posts: 2 2.21 Dollars($)

I have defaulted on a credit card debt ..My husband does not know about this..It has been 4 months since I paid them. We are both on SS and own our home outright..His name is NOT on the credit card and AR is not a community property state..Can the cc company put a lien on our home or freeze our checking account? Thank you so much..I need advice badly and cannot afford a lawyer..

gmakerley · Posted: Thu Feb 26, 2009 7:31 am Post subject:

a lien can be placed on your home if and when a judgment is granted by a court. if you've reached that point, then it may happen. as for freezing your checking account, that's not really an option. again, once a judgment is issued, if you refuse to comply with the payments set out in court, then the company can execute against your checking or savings account(s).

you may not be able to pay a lawyer, but isn't there some way you can afford to pay at least a little bit to the credit card company? you'd prefer not to pay and perhaps incur a court judgment that could lead to more serious problems? hard to believe, but...

hillbillibette · Joined: 26 Feb 2009 Posts: 2 2.21 Dollars($)

I tried to pay them what I could afford to pay and they refused..I had this credit card for 20 years and have had excellent credit..I don't care about a credit score any longer..I am seriously ill, being 73 years old and the stress of this is contributing to my illness..I just do not know what to do or where to turn..The debt has not gone to a collector as of yet but since it has been 4 month I feel it will soon...Thank you so much for your fast response...

gmakerley · Posted: Thu Feb 26, 2009 7:40 am Post subject:

bette, i appreciate your situation and understand your feelings, i think.

you may as well have them "charge off" your account (in other words, take it off the books as a real asset to them), at which time you can make payments at the best rate you can. if a collection agency is involved, try to work out a deal to make some sort of payment to them.

don't allow the stress to do you in - it's not worth it. one other question: you noted your home is paid for. have you considered the possibility of a reverse mortgage that would allow you to pay off some bills if you wished to do so, and might give you a reasonable source of income for the remaining years? it may be worth a look.

Guest

Dont listen to this guy! They cant put a lein on your home because its a secured debt/loan. The only way would be if you used the home for collateral. DONT do a reverse Mortgage. It'll cost you all your equity/retirement

gmakerley · Posted: Fri Feb 27, 2009 12:59 pm Post subject:

now i don't mind someone disagreeing with me, but back up your statement, would you please? how is this "a secured debt/loan?" the poster says she defaulted on a credit card. in my neck of the woods, that's an unsecured debt.

and i am not pushing for the poster to get a reverse mortgage. i merely broached the subject. from her post, she "cannot afford a lawyer." that tells me that there are some financial issues that are in place now. it is entirely possible that a reverse mortgage, which would put some money in her pocket, would be beneficial. honestly, there are people for whom such a loan product is helpful. also, how does it "cost all your retirement?"

manoj_gopale · Joined: 16 Feb 2009 Posts: 481 0.49 Dollars($)

Guest

BSDR is gone. Maybe just out of good intention, although she might not really know what she is talking about.

Guest

Mr. Akerley, Is it true in some home association, the association can place lien on the paid off property and a foreclosure can be placed on the propoerty?

jameshogg · Posted: Mon Apr 06, 2009 9:04 pm Post subject:

Hi Guest,

As far as I know, if you don't pay off the dues, then the Homeowners Association can place a lien on your property and can foreclose the property. But if you have cleared all the dues, then they won't be able to place a lien or foreclose it.

Thanks

gmakerley · Posted: Tue Apr 07, 2009 7:38 am Post subject:

condo associations have a built-in lien. association fees must be paid in order to sell, and it is possible for a condo association to bring a foreclosure suit also.

Garysnober · Joined: 17 Mar 2009 Posts: 455 15.40 Dollars($)

HI, Yes they can put a lien on your property. Dont listen to BSDR. If they take you to court you will be forced to pay them the money or they could foreclose the house and sell to pay the bills. Im quite surprised about them turning down your offer of how much you can afford to pay them back. How much debt is it if you dont mind me asking? How much did you offer to them? And im truly sorry about your situation. And always remember health and family first, This is a bad situation but dont stress yourself. You have come to the right place for help.

Guest

Is it possible to get a reverse mortgage if there is a lien on the home? If so, will they pay off the lien before giving you the payments? I am asking for a friend's parents. They had a judgement against them about thirty years ago (failed business) and supposedly there has been a lien on the home. We are trying to talk them into a reverse mtg, but they seem to think they won't qualify with this lien on their home.

jameshogg · Posted: Thu Jun 11, 2009 8:31 pm Post subject:

Hi Sheila,

If there is a lien on the property, then the lenders would not give reverse mortgage to your friend's parents. They will want them to clear off the lien first and then apply for the reverse mortgage. However, you have mentioned that the lien is 30 years old. In such a situation, they can apply for reverse mortgage and check out if the lenders are ready to help them.

They can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will let them know whether or not they would qualify for a loan.

Thanks

gmakerley · Posted: Fri Jun 12, 2009 6:59 am Post subject:

in most situations, there is a statute of limitations. i would have to expect that a 30-year old judgment might not be valid any longer. your friend's parents (or your friend) ought to check in with an attorney to determine if this is the case or not.

in the event that the judgment remains valid, it would need to be paid in connection with the granting of the loan.

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