Unperfected Lien

[Broke in TX]

I filed Chapter 7 at end of Sept 05 and had my 341 at end of October (under old bk law).

Here's my question.

I previously lived in another state and sold my home back in July of 05. The title company I used didn't find my second mortgage and I sold my house with just paying off my 1st and about $15K in judgements. I neted about $15K that I wild carded under Federal Expemptions here in TX.

I had retained a lawyer in my old state and he advised me that since the 2nd didn't show up in the title search that the lien was unperfected and that the debt would be unsecured when I sold the house.

I then moved to Texas and shortly after 90 days of living here I filed pro se.

I've since discovered by doing some online research that the reason my 2nd mortgage didn't show up was because they filed it against the wrong legal description.

When I filed my bk petition (pro se) I listed my 2nd mortgage as an unsecured debt.

Can they fight my discharge? What other recourse do they have against me? Can this debt be discharged as an unsecured debt?

[StaciMM]

This is an area where legal help would be best. Keep in mind my thoughts are not backed in legal expertise!!

If you sold the house, then the title must have transferred to the new owner - right? (From what I know, the close would not have happened if that was not possible.) So-your obligation will be discharged.

[Minnymouth]

If they failed to perfect their lien - sorry about their luck - they become a unsecured creditor also......they will be discharged too....as unsecured.

StacciMM is right, you would have not been able to sell the home, and close on it without paying off the 2nd mortgage too, especially if it was a secured lien. So I'm sure they had no lien on the home.

Another fine example of poor paperwork by professionals..........it never ceases evidently......

Check your paperwork folks...........carefully.

Minny