Question About Lien Against Property
Im back with another question from yet another family member. This one goes beyond my knowledge of credit law. My aunt has a house that she has paid for. She had 2 loans, one for a car, and one from a credit union. Neither were a mortgage and neither have her house listed as collateral. Both places have placed a lien against her and her property.
Questions are as follows:
A. IF she wanted to sell the house, what type of title issues does this cause. (She doesnt want to sell her house, she just wants to know)
B. She wants to know if there is a statute of limitations on the liens since the liens are against her AND her property.
Quote:A. IF she wanted to sell the house, what type of title issues does this cause. (She doesnt want to sell her house, she just wants to know)
They will likely need to be paid off from the proceeds of any sale of the property.
Quote:B. She wants to know if there is a statute of limitations on the liens since the liens are against her AND her property.Likely there is. In Florida, there is a 10 year period during which judgments remain valid and enforceable. Judgment holders may act affirmatively to renew judgments for a second 10 year term, otherwise they expire. Your state is likely similar, but not exactly the same.
FYI: In Florida, the 10 year renewable lien (provided it has been recorded) applies only to real property; liens on personal property are valid for 5 years provided such liens are recorded with the Secretary of State's office.
Not only if she wanted to sell, but also if she wanted to refinance for any reason. Those liens will have to be either satifsfied with proceeds from her equity or be paid off from her personally.
The others have answered your questions on Statues of Limitations.
good luck,
Beau
Thanks for the info. I knew that on just a regular judgement it was 10 years but I didnt know if the situation was different due to it being a lien on the property. 1 of the 2 liens expires next month (provided that they dont renew it). That one is the one that has the best chance to be renewed, since it is close to 10K from what Im told. I know I would renew it if it were me. Both debts have probably been passed around to every collection agency and its mother. I guess I will be making a trip to the courthouse in December to checkup on it. Thanks guys.
remember liens are state specific. 10 years may or may not be the case in your state. You might want to check for yourself at www.findlaw.com.
It is. I already checked on it. Va is 10 years renewable to 20 or you lose it.
I'd advise her to talk to a title co. locally & have them tell her exactly what they'd require her to pay, or have paid, in order to pass good title. For either a buyer or a refi.
This is probably her cheapest approach (other than asking for free advice on this board!) and will get her real info on her exact situation.