I had a student loan/scholarship while in school. It is paid to the student from the general assembly funds from the state. If the student does not comply with the "rules" of the program they basically default and payment is required with a 10% interest penalty.
Well, it happened to me. Now the state is saying that I have 21 months to pay off the loan or it will go to the general assembly to do three things:
1. Place a lien against my home.
2. Levy my earnings.
3. Take tax refunds
all until the loan is paid.
My biggest concern is my home. I have no equity in the home. I just purchased it in August with my husband. What exactly does a "lien" mean and can I be forced out of the home? I live in North Carolina.
Thank you.
2007-12-05 07:26:49 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The lien may or may not be something to worry about. You need to speak to a lawyer. The "advice" you get here is worse than worthless -- it is dangerous.
2007-12-05 10:31:55 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I will try to keep this simple. Liens are a marked interest in the property. Assuming you have a mortgage, your lender will be a lien holder. If you decide to sell the home, the lien has to be satisfied before the new owner can take possession.
No, you cannot be forced out of the home. If the lien remains in place, this will only effect you when you sell.
Can you refinance this loan into something more palatable?
2007-12-05 07:34:59 · answer #2 · answered by godged 7 · 0⤊ 0⤋
Lien will have to be taken care of before a refi of the property or you selling it.
The good thing is, since you just bought the property and most of the payment you are sending in is interest and can be written off during taxes, you will most likely get a bigger return(depending on income of course)
Use the tax return of this or next year to payoff that lien and take care of it...
2007-12-05 07:42:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You are advised to seek legal counsel in this situation. North Carolina appears to be one of the states (as is mine) which allow a lienholder to force the sale of the liened property to effect collection of the amount due.
While it appears to not be mandatory that the lienholder do so to retain the lien, it appears that it IS possible. However, also bear in mind that, if the lienholder decides to pursue such actions against your home, you don't have equity and the mortgage holder falls first in line for payment, making their efforts rather fruitless.
2007-12-05 07:52:41 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
A lein is a right against your property. The lein will show up when someone does a title search. In order to sell your house you'll have to pay the lein off. Any payments that you make (or are taken) like your tax returns will reduce the lein.
They won't be taking your home.
2007-12-05 07:44:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A Lien is a debt against your house. It won't be a big issue unless you want to refinance or sell your house. If you did want to do either of those things, you would need to pay the debt in full.
2007-12-05 07:33:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋
What they are going to do is get a civil judgment against you for monies owed to them, and then attach whatever property of yours they can in order to effect repayment. They are putting a lien on your property, and they can do it wherever you have property in the US.
2016-04-07 11:12:38 · answer #7 · answered by Jane 4 · 0⤊ 0⤋
Put the deed in trust. A lien can't be attached to a property that is in trust. Much easier than trying to refinance. done.
2007-12-05 07:41:14 · answer #8 · answered by C B 2 · 0⤊ 0⤋