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Ch 7 discharged 13 years ago - Will property lien still be there?

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    Ch 7 discharged 13 years ago - Will property lien still be there?

    Our chapter 7 was discharged about 13 years ago. My husband had a small company in his name then and had a business loan with a large bank in GA that was secured with the title to our home. We reaffirmed the home loan. We have not received anything from the bank in these 13 years. We want to re-fi the home for lower interest rate now. It has changed lenders a couple of times. Is there any way to know if we will be required to pay off that loan? And would it have been gathering interest all this time? Thanks for any advice or direction with who to ask.

    #2
    The mortgage/lien/deed of trust held by the lender is junior to your main mortgage and, unless the lender (or its assign) has recorded a release of that mortgage/lien/deed of trust, when you go to refi it will pop up. Your Chapter 7 did not release that lien. However, it is always possible (but doubtful) that the lender released it on its own. The only way to be sure is to go to the county recorder and ask someone to see what liens are against the property. Alternatively, you can contact a title company and ask it to supply you with a complete title report. You will have to pay for that service but I recommend it as you will have a documented and complete title history of your property.

    As to what is owed. . . that is anyone's guess. When you go to refi, the current holder of the note will supply a payoff statement. You will be required to satisfy the mortgage/lien/deed of trust if you want to refinance (or sell) the property. How much you have to pay will be determined by the lien holder either per the contract or per some negotiated settlement with you.

    Lastly, check with a local attny to see if you have any defenses against enforcement of a lien when there has been no attempt to enforce it in 13 years. I doubt there is such a defense but it never hurts to ask someone familiar with the laws of your State.

    Des.

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      #3
      Originally posted by blaze View Post
      Our chapter 7 was discharged about 13 years ago. My husband had a small company in his name then and had a business loan with a large bank in GA that was secured with the title to our home. We reaffirmed the home loan. We have not received anything from the bank in these 13 years. We want to re-fi the home for lower interest rate now. It has changed lenders a couple of times. Is there any way to know if we will be required to pay off that loan? And would it have been gathering interest all this time? Thanks for any advice or direction with who to ask.
      Have you been paying the property taxes on the house? How long have you lived there? Who is the lender and why do you think the lender never foreclosed?

      I'm not attorney but you could also file a quiet title action or if you have been there 20 years, adverse possession. If they really don't want to fool with you, then anything that makes them have to show up in court might be better than waking the sleeping giant with a payoff statement.

      I suppose if they attempt to foreclose, you could file a chapter 13...

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        #4
        womanonfire - Hi...you may or may not get a response since the last post was 10/19.
        Filed Chapter 13 - 07/20/12
        Discharged 8/2/16

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