Legal Question in Real Estate Law in New York

How do I get lien removed

We declared bankruptcy in '97. There were two

mortgages on my house. The primary one was

reaffirmed and the second one was with The Money

Store which sent us a 1099 form that read

cancellationof debt. They never contacted us after that. I

had the second mortgage for over 8 years at 14% so

they got their money and more. I had borrowed 40K and

still owed 37k which was shown as cancelled on the

1099. If the debt was cancelled why is there still a lien

onthe house? How do I get it removed because the

original Money Store merged or went out of business?


Asked on 7/08/03, 5:40 pm

1 Answer from Attorneys
Seth Kaufman Seth M. Kaufman

Re: How do I get lien removed

When you go through bankruptcy, debts that are discharged are only discharged to the extent they are personal obligations of the debtor. Duly recorded mortgages remain valid liens as against the property. Your payments under the note are irrelevant to the extent that the debt was not satisfied. However, the cancellation as reported on the 1099 is written off by the lender and charged as taxable income to you. It sounds like the debt was written off after you came out of bankruptcy. The creditor should have recorded a satisfaction/discharge of lien. I need to see all of the relevant documentation to properly assess your case. Please call me at 212-367-9167 if you would like to discuss this further. I do not charge a fee for the initial consultation.

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Answered on 7/08/03, 10:30 pm


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