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Judgment lien not removed after an appeal reversal.

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I have not heard back yet from the lender and I still need to get thru to Midland to see if they will remove it because of the BK.  Frustrating waiting to hear.  

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Pam,

The Castleton decision, which cites Judge Haines from his Rand decision is exactly what I have been saying.  Unfortunately Castleton does little to assist you since you are not selling the home.  In addition, the decision is out of Division 1 and, while it comports with the majority, is technically not binding on Division 2 where you are.  

You have a lender who simply will not lend if that judgment is not released.  As @Harry Seaward has indicated, you can’t force the lender.

Read Castleton again.  Please note the reference to quiet title actions and recovery of legal fees under ARS § 12-1103(B).  I do not handle quiet title actions so I cannot comment on the process but, it might be a way to get rid of the lien without reopening the bankruptcy case (assuming you can't get Midland to cooperate).  It might serve you well to contact Gust Rosenfeld as that Firm represented Castleton. I don’t know what GR will charge for a consultation but I can tell you that the Firm is first rate and, while the dollars you are dealing with probably do not come close to the dollars involved in Castleton, there is nothing wrong with getting some info from the proverbial “horse’s mouth”.

Please keep us posted.

Des.

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27 minutes ago, despritfreya said:

In addition, the decision is out of Division 1 and, while it comports with the majority, is technically not binding on Division 2 where you are.  

She is in Phoenix. Div 1 is binding. 

 

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10 hours ago, Harry Seaward said:

She is in Phoenix. Div 1 is binding. 

 

Not sure where I saw "Tucson".  Maybe I am confusing Pam with someone on another forum with the exact same issue.  Since this is not an uncommon problem that is probably what happened.  Regardless, the case does not help Pam's situation.

Des.

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1 hour ago, despritfreya said:

Not sure where I saw "Tucson"

She mentioned the lawyer for Midland (Bursey) was headquartered in Tucson. 

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Typically this is something you or your bankruptcy attorney would handle. This is typically not the obligation of the creditor. 

Judgment liens survive bankruptcy unless you make what is a called a 522(f) motion under the bankruptcy code. 

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I finally got thru to Midland in the BK dept. She gave me a case number and an e-mail to forward the appeal to her. My lender sent everything over. They will have their legal look it over and determine if they will remove the judgment.  If so, they will send a letter of progression to the lender and title company, and remove the judgment within 45 days.

My lender also sent the unredacted appeal decision to the title company. They asked for this. Also, there is talk of paying off Midland out of the closing if all else fails.  That would really mess with my mind after all the years of fighting them. So now we wait and see how it plays out.  At least I have more hope than yesterday.  Pam

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Well Great News, My lender just called and said that title was able to remove the judgment with the appeal papers. Not sure if Midland had anything to do with it..  I will ask her when we go in to sign final papers. What a huge relief. Thank you to all for your help and advice and good wishes!!  Harry and Des especially.  Pam

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