Posted on: 02nd Jan, 2009 11:22 am
can a unpaid credit card company attach a lein on a reverse mortgage?
jpuffygreen, happy new year and let's see...
if you fail to make payments on your card accounts, there is a possibility for them to sue you and obtain a judgment. if you continue to fail to pay, they can place a lien on your property (not on the mortgage) called a judgment lien. in all likelihood, they will wait until the home is sold, accumulate interest in the meantime, and obtain payment in full at that time.
this latter occurrence can only take place if they do, indeed, sue you for nonpayment first. i hope this is instructive.
if you fail to make payments on your card accounts, there is a possibility for them to sue you and obtain a judgment. if you continue to fail to pay, they can place a lien on your property (not on the mortgage) called a judgment lien. in all likelihood, they will wait until the home is sold, accumulate interest in the meantime, and obtain payment in full at that time.
this latter occurrence can only take place if they do, indeed, sue you for nonpayment first. i hope this is instructive.
Hi jpuffygreen,
I agree with George. However, you can check out the option of a debt settlement. In case of a debt settlement, your payments will be reduced by 40%-60% depending on your situation. You can contact a debt settlement company and discuss this option with them. In my opinion, this will help you to save your property from liens.
Thanks
I agree with George. However, you can check out the option of a debt settlement. In case of a debt settlement, your payments will be reduced by 40%-60% depending on your situation. You can contact a debt settlement company and discuss this option with them. In my opinion, this will help you to save your property from liens.
Thanks
what happens if you stop paying credit card and live in a reverse mortgage home?
Hi Sue,
Credit card debts are unsecured loans. So, if you stop making payments your creditors will not be able to come after your home. However, they may get a judgment against you and garnish your wages or freeze your bank accounts, etc. As far as the reverse mortgage is concerned, it will not be due and payable so long as you use it as your primary residence.
Credit card debts are unsecured loans. So, if you stop making payments your creditors will not be able to come after your home. However, they may get a judgment against you and garnish your wages or freeze your bank accounts, etc. As far as the reverse mortgage is concerned, it will not be due and payable so long as you use it as your primary residence.
although the credit card debts are not secured, as jenkin7 noted, those creditors can seek and obtain judgment against you. in so doing, if you neglect to pay according to the terms of that judgment, they can file a judgment lien on the home. not to worry, though, because creditors know that it's a waste of time to try to enforce such a lien while there's a mortgage on the home.
what they'll do is bide their time and reap their payoff once the home sold. yes, they'll accumulate interest in that time, but they won't bother you for payments (probably).
what they'll do is bide their time and reap their payoff once the home sold. yes, they'll accumulate interest in that time, but they won't bother you for payments (probably).
>>can a unpaid credit card company attach a lein on a reverse mortgage?
Yes. A Reverse Mortgage works exactly like a traditional mortgage when it comes to liens.
Yes. A Reverse Mortgage works exactly like a traditional mortgage when it comes to liens.
