radhorse

Lien on home

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We are refinancing our home. We have it down to about $50k from $250k. Our loan was approved by our credit union and when they went to get the title work done, there was a lien that said it is with BOA.

We had a BOA credit card that the account was settled (with BOA) for $5500 in 2008. settled. $0 balance. Closed.

We had no idea that there was a lien on the property. So the credit union called the number associated with the lien and it was a collector. They said that they needed $6500 to "close out the account". The credit union then called BOA who told them that the account was already closed and that we owed $0.

So the credit union again called the collector and they now say that we owe nothing but that they cant remove the lien.

Our credit union has turned this c.a. into the MI (where the house is) state title office for violations.

This is costing us $1800 per month until we close (old mortgage) Our loan was approved 2 months ago.

Is there a way that we can get this collector or whoever they are to pay that ? We cannot close our loan until this title is clear. They wont remove the lien. Yet they say that we owe nothing .

This is obviously violating many laws.. but how can we get them to reimburse us for the $1800 per month that we have to pay for each month this loan is held up? Is there any other amount that we can get them to pay for knowingly trying to collect the $6500 that we do not owe them? And/or for keeping this on our credit reports for all of this time (3 years) knowing that it is not true?

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Guest usctrojanalum

Who exactly has the lien placed on your home, that's who you go to get the lien removed. Typically it would be an attorney or some type of law firm who would have the lien placed on the property, is that who the title company contacted? did they contact an attorney?

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Rik and USC are pointing you in the right direction, I would only add that title company is being paid via fee's from your loan transaction. Given that you are the customer, I would make sure I had any information they have regarding this lien, once I have that. I am shopping for an attorney should be able to find one on small retainer, with contingency of fees from future action.

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As the others have said, you need to contact an attorney to get this lien removed. The CA thinks they have you over a barrel because you are refinancing your home and they know the lien has to be paid in order to clear the title.

You need an aggressive consumer attorney. The title company is just there to discover the liens and deliver title and close the refi. The title co can negotiate liens, but they are not nearly as effective as a good consumer attorney. Their primary function is to just get the payoff figures and pay off the liens and record the satisfaction - not real debt negotiations.

Since this debt was paid and the lien is preventing your refinance, it seems like you are in a good position to take this CA to the cleaners. Especially if the lien was filed after the debt was paid. IMHO, getting a satisfaction at this point from the CA is not enough - they need to vacate the lien and pay you appropriate damages.

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I wonder though if a good real estate attorney may be your first point. A good real estate attorney may be able to file a case to "Quiet the Title" which would effectively remove the lien. Mortgage companies have been doing this for years as a way to get around proving that they actually have the mortgage so I cannot see why you can't do this.

Also, you need to look for a court case where this CA actually sued you in court. That would be the only way to get such a lien. If there is no such case, that would only bolster your position even more in the "Quiet Title" suit.

Finally, keep track of what extra you pay because you could not refi and what you pay the quiet the title. The FDCPA allows for you to collect actual damages that can be proven as well as $1000 and I am sure a good consumer attorney and make this one stick.

Good Luck.

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This is a case where I would claim willful noncompliance and go for punitive damages. Who knows, maybe they'll pay off a portion or all of your new home...get it in front of a jury.

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Since this debt was paid and the lien is preventing your refinance, it seems like you are in a good position to take this CA to the cleaners. Especially if the lien was filed after the debt was paid. IMHO, getting a satisfaction at this point from the CA is not enough - they need to vacate the lien and pay you appropriate damages.
Agree 100%...seek a GOOD consumer attorney. I think you have a case for sizable actual damages and a strong possibility of punitive damages. Any attorney who has enough sense to spend 30 minutes looking at this would likely jump at the opportunity to hammer these idiots and take 40% of any judgment or settlement.

Good luck. And keep us posted.

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