Can you have a lien on your on house?

sunshinetx28 · Joined: 20 Feb 2008 Posts: 3 2.26 Dollars($)

My boyfriend and his ex father in law were both on the loan at the bank and on the deed. The ex father in law goes to the bank and buys the loan and then the bank does a transfer of lien to the father in law and so now he has a lien on property that he also owns. We believe this is not legal but not certain where to find the laws regarding this? We live in Texas.

charlesarmbruster · Posted: Wed Feb 20, 2008 11:17 am Post subject:

Texas is unique, and beautiful, State!

It sounds as though the older man may have been a non-resident co-signor on the loan. I cannot tell from your description whether he simply took out a 2nd lien on the property, or if he did something different. It isn't likely that he could have legally put the Deed into his name without your boyfriend's knowledge or signature, unless a divorce decree made this stipulation and he was a minor at the time of the divorce.

A lien is an emcumbrance on the property -- the original 1st mortgage is considered a lien. A 2nd mortgage, or HELOC, or home equity loan is also considered a lien in second position -- it would be paid after the 1st lien when the house is sold.

Additonal liens agianst the property may be tax-liens by the State or the Federal government, small-claims by contractors, past-due medical, apartment rent unpaid, etc. These monies would all be paid from the home proceeds at the time of its sale.

I would approach his lawyer, if possible. If you visit the title company of record, a considerate Escrow Officer might take the time to listen to your story and help you understand what exactly took place -- title companies move all these contracts over their desks...they know what happened here. Ask them!

gmakerley · Posted: Thu Feb 21, 2008 7:06 am Post subject:

good thinking, chuck - it is certainly puzzling to think that this man could have visited the bank and purchased the loan from them at the same time that he is one of the obligors on that loan.

visiting "his" attorney may not be constructive, inasmuch as he would have his client's interests to protect. on the other hand, retaining an attorney would be a good move, i surmise, for sunshine and her boyfriend.

sunshinetx28 · Joined: 20 Feb 2008 Posts: 3 2.26 Dollars($)

Thank you both for you help. To clarify some things my boyfriend and his ex father in law have both been on the deed from the get go. I did talk to the OCC who regulates National banks and they told me that the bank could indeed sale the loan to anyone. I find it strange though like you have said that it could be purchased when he in one of the obligors on that loan. We have been told also that now the ex father in law could foreclose on our house because he bought the loan. Who is he now to say how much if anything that my boyfriend owes him being that the debt was his too. We have talked to an attorney on the phone and are going from there. Let me know what you think?

gmakerley · Posted: Thu Feb 21, 2008 9:38 am Post subject:

this is so bizarre. if ex-f-i-l forecloses, he will be foreclosing on himself!

is this what the world is coming to? does it mean he cannot get along with himself?

yes, i can understand the rationale that the bank can sell the loan to anyone it wishes to do business with, but how could it do so in this instance?

are you sure that the bank didn't choose to absolve the ex-f-i-l of responsibility before they chose to sell the loan? does he have some sort of relationship with the bank that might have influenced this transaction? if so, we might just be looking at a fraud scenario.

attention lawyers on the forum: do you care to chime in with some thoughts on this matter?

sunshinetx28 · Joined: 20 Feb 2008 Posts: 3 2.26 Dollars($)

To my knowledge he does have a relationship with the bank....the only paper work we have received and we went and got it frm the county clerk's office is paperwork showing transfer of lien...I agree why would he foreclose on himself...he of course would not file that on his own credit just on his ex son in law. I believe he did this so that he could try and take the house for only what he paid on it. If you ask me all of it is shady!!

gmakerley · Posted: Thu Feb 21, 2008 10:32 am Post subject:

"shady" is the nice word for it. i agree with you sunshine.

do whatever you need to do to fight this.

livinginnky · Posted: Thu Feb 21, 2008 11:10 am Post subject:

This happens all the time. It doesn't sound like anything shady going on to me. Of course I am not an attorney either.

People do this all the time. If I had to guess he probably didn't by it personally either, he probably purchased it through a legal entity. Anyway all that happened is the same thing that happens to most loans (just on a smaller scale). The note itself can be sold to anyone willing to buy it at. Just like Fannie and Freddie buy all that "paper" as it is called.

He has simply bought the "paper" and is now the lender on the loan. He is not going to foreclose on himself, and what court would allow him to steal it from the son. We have laws for a reason and even though some are abused this is not one of those times.

Let me know if you have any questions.

livinginnky · Posted: Thu Feb 21, 2008 11:11 am Post subject:

By the way... is the father threatening you with it?

Perhaps he doesn't understand what it is that he has purchased.

charlesarmbruster · Posted: Fri Feb 22, 2008 3:18 pm Post subject:

Yeah, is this really a problem for your boyfriend?

Who is making payments each month? Were monthly payments timely before this action was taken? Were both parties making separate payments?

It is possible that the 'ex' is taking ownership to allow more flexible payments by your boyfriend, while he improves his credit position.

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