Q: I had to turn in my car because I could not make the payments anymore. My home is in my sister’s and my name. Can the bank that gave me the car loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds.. put a lienA Lien is an encumbrance against the property, which may be voluntary or involuntary. There are many different kinds of liens, including a tax lien (for unpaid federal, state, or real estate taxes), a judgment lien (for monetary judgments by a court of law), a mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. lien (when you take out a mortgage), and a mechanic's lien (for work done by a contractor on the property that has not been paid for). For a lien to be attached to the property's title, it must usually be filed or recorded with a local county government office. on my on my home? If they can and I go to sell it what will happen? Do they get whatever money is left over or will it block the sale of the home?
A: We’re sorry you’re having financial difficulties. Many people are in a similar situation these days.
Here’s the story: If the value of your car was less than what you owed on the car, the finance company can still sue you for the amount you owe.
If the finance company does come after you, sues you and gets a judgment against you, they can use that judgment to place a lien on your home. If you and your sister sell the home before the bank gets a judgment and files a lien against you, the bank won’t be able to stop the sale but will want to get any money that you might have gotten from the sale of the home.
If you haven’t sold the home and the bank places a lien on the home, you won’t be able to sell the home unless you pay off the lien. If the home doesn’t sell for enough to pay off the existing mortgage lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. or it’s just enough to pay off the existing mortgage lender, you would have to work with the finance company to release their lien on the home and allow the sale to move forward.
Please talk to a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. for more details.
Jan. 19, 2009.