Legal Question in Credit and Debt Law in Massachusetts
attachment of real estate
A credit card company has sold the debt to an outside source. That source is going to attach the real estate for the outstanding debt.
What will the mortgage company do or the home equity loan company? Will they react and foreclose?
2 Answers from Attorneys
Re: attachment of real estate
The creditor could only attach your equity in the home, not any part of the mortgage company's ownership interest in the property. Also, the creditor cannot attach even the first $300,000 of your equity if you filed for Homestead Act protection at closing in the Restry of Deeds. Chances are, the filing was made at closing and you are protected to that extent. Look through your closing binder or call the attorney who represented you in the sale -- or go to the Registry of Deeds in your county and search the filings -- to find out.
It is possible the creditor is using scare tactics as a collection strategy, and has no intention of actually trying to attach equity in the property (which would be illegal, but not surprising). This is especially so if the amount at issue is small (say, under $10,000).
Re: attachment of real estate
If you are current on your payments with all other lienholders on the property ( be they the mortgage or home equity company), they would have no right to foreclose.
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