mortage lein sold

[jpals1952]

Jurisdiction

Illinois

Back in 1999 I had a 2nd mortgage loan. Then in 2003 I had to take out bankruptcy judgement on this loan. The bank sold the lean to a collections company. Now I want to sell the property and still have a lein on the property with the bank. It shows a 0 balance in the banks name. The problem is they won't give a release of lien . they say I have to talk to the collections company. Can they do this?

 

[army judge]

Back in 1999 I had a 2nd mortgage loan. Then in 2003 I had to take out bankruptcy judgement on this loan. The bank sold the lean to a collections company. Now I want to sell the property and still have a lein on the property with the bank. It shows a 0 balance in the banks name. The problem is they won't give a release of lien . they say I have to talk to the collections company. Can they do this?

If you declared bankruptcy and the federal court granted you relief, the debts were fully discharged.
You can't sell the property LEGALLY.
Your name is on the deed until the lender forecloses.
You, however, can't sell it, otherwise no one would pay their mortgage.
Debtors would declare bankruptcy, have the debt discharged, sell the property and make a massive profit at the expense of the lender.

 

[despritfreya]

I assume you filed a Chapter 7 in 2003. You discharged the underlying promissory note. Your discharge DID NOT remove the valid lien against the property. If you want the lien released you will most likely have to negotiate with the current holder of the note. This means you will have to pay something. The "something" may or may not be the total owed under the promissory note. If you had an attny back in 2003 he/she should have told you that the lien will survive the bk .

Bottom line - you are free to try to sell your home. You will not be able to close on the sale unless you get the 2nd to agree to release its lien.

Des.

 

[adjusterjack]

they won't give a release of lien . they say I have to talk to the collections company. Can they do this?

They already DID do this.

Now you call the collection company and see how much it's going to cost you to buy a lien release.