What legal entitlement does a collections company have to a house?
by Mortgage Rates on Thursday, September 23rd, 2010 | 2 Comments
-
Mortgage Info
-
Updates
-
Useful Links
-
-
Tags
2010 About article Auctions bank banks best Business buyers change Credit Debt Equity Financial First fixed Foreclosure From good Government Help Home house Housing interest Loan Loans Market more Mortgage Mortgages Need News options qualify Rate Rates refi refinance Refinancing should this Time variable would-
Meta
They cannot place an additional lien on the house – they already have one. You have made an offer. If it is not accepted by both mortgage holders, then walk away. The collections company is just trying to get extra cash. Once the house is auctioned off, the new owner gets it free of liens and the second mortgage holder gets nothing else.
This is what happened.
There was apparently a collection where the collection agency got a judgment against the owner, and that was placed as a lien against the property.
A judge will only approve such a move for substantial amounts of money….and tens of thousands of dollards would qualify.
The short sale cannot go through unless the collection agency is paid off.
Thus, the entire point of putting a lien against the home.