Legal Question in Credit and Debt Law in New York
Credit Card Liens
We have recently been advised of collection efforts by several credit card companies. One of these collection companies mentioned placing a lien against our house to recover the money. What does this mean and does this mean they can sell our house from under us even though the bank technically still owns it? We are getting nervous that all our efforts to resolve this have been worthless and are afraid we will lose everything.
1 Answer from Attorneys
Re: Credit Card Liens
A lien may arise if the Credit Card company
successfully sues and recovers a judgment.
Hopefully, before this is done you will hire
an attorney
The judgment lien will be subordinate to the
mortgage. The Credit Card Company could
attempt to force a sale of the house, but
the proceeds of such foreclosure sale would
go first to the mortgage and then to the
judgment. Should the Judgment lien affix
and you attempt to sell the property, the
judgment creditor gets the money at time
of closing
Do not forget the idea of a Chapter 13
Bankruptcy Reorganization or a credit agency
reorganization
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