If you take money from your credit card to buy a house, can you lose the house?

[justalayman]

I don't think GMAN777 read the answer enclosed in the quote, in HG's first response.


...or maybe he did and didn't understand it.

Actually the longer this thread continues the more the OP tends to show HG's suspicions to be more and more reasonable. The OP continues to argue even after getting advice seemingly because it isn't what they want to hear.

Bottom line, if the credit cards are not defaulted on, the whole question would be irrelevant. Heck, if the situation itself is totally legal, it sounds like a cheap way to finance a house but the OP seems to be obsessed with the results in a default situation while proclaiming everything being up-to-date.

I think that is salmon HG!

 

[HomeGuru]

Actually the longer this thread continues the more the OP tends to show HG's suspicions to be more and more reasonable. The OP continues to argue even after getting advice seemingly because it isn't what they want to hear.

Bottom line, if the credit cards are not defaulted on, the whole question would be irrelevant. Heck, if the situation itself is totally legal, it sounds like a cheap way to finance a house but the OP seems to be obsessed with the results in a default situation while proclaiming everything being up-to-date.

I think that is salmon HG!

**A: your preception is very good on this one. And we all know that the whole story has not been told. Salmon close, but when it comes to this writer, it's flounder.

 

[Happy Trails]

**A: your preception is very good on this one. And we all know that the whole story has not been told. Salmon close, but when it comes to this writer, it's flounder.

I agree. I figured the poster either missed your answer in the quote or ignored it.

So I gave him the benefit of the doubt... Just for the halibut.

 

[GMAN777]

G

What a creditor can or cannot do is a function of the laws of your state. I am not a NY resident (assume you friend lives in NY) and my impression has always been that NY statues are stacked in favor of the creditor.

In the event of a default, you can bet your last nickel that the creditors are going to allege fraud. In my opinion, they will be right on the money because it sounds to me that you and/or your friend are trying to figure out a way to "steal" money from the credit card company.

Regardless of my opinion, it all really depends on what the judge believes. If the judge thinks there is fraud, then the judge will allow a "the veil to be pierced" and thus a foreclosure will ensue.

In the best scenario and assuming the credit card company loses the fraud issue, they will be awarded a judgment which will then attach to the real esate. Again, I am no expert on NY law. In most states a judgment creditor cannot force a foreclosure. But, they sure as heck cloud the title of the real estate. Which means when you go to sell the property, the judgment must be paid, complete will all the accured interest and costs -- which at default rates will be outrageous.

Judgments also lead to wage garnishments and bank levys. Judgments in NY last 10 years and can be renewed for another 10 years. 20 years is a long time to have this hanging over your head -- especially if your daily wake-up call if from the judgment creditor.

You came on this site asking for advice. You have been given advice from several people. Don't be in a snit if you did not get the answer you wanted or you think the advice is wrong. Only an idiot would rely on advice from strangers on the internet anyway. Hire a lawyer it you want advice you can take to the bank. Otherwise, quit carping.

I would have to say that your answer is better than the one HOMEGURU gave. He demonstrated a lack of understanding of the difference between secured and unsecured debt. He actually said that creditors can force you to sell your house so you can be forced to pay an unsecured debt. I had to laugh because even I know that that is not the case. I didn't complain because I realize that you get what you pay for. However, i did ask for help from other more knowledgeable people and you did provide me what I was looking for.

Thanks for your help. I appreciate it. There is no need for me to see a lawyer as this does not pertain for me. In the interest of intellectual curiosity, I posed my question.

Thanks

 

[GMAN777]

Actually the longer this thread continues the more the OP tends to show HG's suspicions to be more and more reasonable. The OP continues to argue even after getting advice seemingly because it isn't what they want to hear.

Bottom line, if the credit cards are not defaulted on, the whole question would be irrelevant. Heck, if the situation itself is totally legal, it sounds like a cheap way to finance a house but the OP seems to be obsessed with the results in a default situation while proclaiming everything being up-to-date.

I think that is salmon HG!

COLLUSION OF THE UNKNOWLEDGEABLES. THAT IS JUST TOO FUNNY. BTW, I prefer TUNA to SALMON

 

[GMAN777]

I agree. I figured the poster either missed your answer in the quote or ignored it.

So I gave him the benefit of the doubt... Just for the halibut.

wow. you guys are unbelievable. you can't admit when you are wrong. this is an exact quote from HOMEGURU:

"if I was the cc attorney, I would foreclose on the attached judgement liens which would mean essentially a foreclosure of the property to pay the debt."

UNBELIEVABLE. So if HOMEGURU was the CC attorney, he would, essentially, break the law by forcing a property owner to sell his property to pay off UNSECURED DEBT. PROPERTY OWNERS CANNOT BE FORCED TO SELL THEIR PROPERTY TO PAY OFF UNSECURED DEBT. EVEN I KNOW THAT! I think I'm done here. Time to look elsewhere for help.

obeisantly yours,

TUNA

 

[seniorjudge]

wow. you guys are unbelievable. you can't admit when you are wrong. this is an exact quote from HOMEGURU:

"if I was the cc attorney, I would foreclose on the attached judgement liens which would mean essentially a foreclosure of the property to pay the debt."

UNBELIEVABLE. So if HOMEGURU was the CC attorney, he would, essentially, break the law by forcing a property owner to sell his property to pay off UNSECURED DEBT. PROPERTY OWNERS CANNOT BE FORCED TO SELL THEIR PROPERTY TO PAY OFF UNSECURED DEBT. EVEN I KNOW THAT! I think I'm done here. Time to look elsewhere for help.

obeisantly yours,

TUNA

PROPERTY OWNERS CANNOT BE FORCED TO SELL THEIR PROPERTY TO PAY OFF UNSECURED DEBT.


Hmmm...when did THAT happen?

I am going to have to start watching the news....

 

[HomeGuru]

wow. you guys are unbelievable. you can't admit when you are wrong. this is an exact quote from HOMEGURU:

"if I was the cc attorney, I would foreclose on the attached judgement liens which would mean essentially a foreclosure of the property to pay the debt."

UNBELIEVABLE. So if HOMEGURU was the CC attorney, he would, essentially, break the law by forcing a property owner to sell his property to pay off UNSECURED DEBT. PROPERTY OWNERS CANNOT BE FORCED TO SELL THEIR PROPERTY TO PAY OFF UNSECURED DEBT. EVEN I KNOW THAT! I think I'm done here. Time to look elsewhere for help.

obeisantly yours,

TUNA

**A: Ok raw fish, believe what you want. This is too too funny. I guess I'll have to ask for a refund on my JD.

 

[Ladynred]

Ok, I'm gonna jump in here. I've got a few points of my own to make.

As far as foreclosing on the judgement, is that really possible?

Absolutely and since the house has 100% equity, its even MORE of a target for a foreclosure on a judgment lien. She'd get to keep the exemption but that's all she'd get to keep unless there was more equity than what was owed.

In the case where you fail to pay unsecured debt, a judgement lien is attached to your house but THEY CAN NOT FORCE YOU TO SELL

Technically they are not forcing YOU to sell, they are selling it out from under you ! The LIEN effectively secures the property, the SOURCE of the funds used to buy the property means NOTHING at that point. The fact that there is 100% equity in the property makes it a juicy target - all they'd have to pay her is the exemption amount, the rest they get to keep to satisfy the judgment. IF there is any excess equity over what is owed, you'd get that too.

HomeGuru, you didn't even know the difference between secured and unsecured debt.

Oh yes he does. Its YOU that fails to understand the nature of a judgment lien and the legal recourse available to the judgment creditor !

UNBELIEVABLE. So if HOMEGURU was the CC attorney, he would, essentially, break the law by forcing a property owner to sell his property to pay off UNSECURED DEBT

He wouldn't breaking the law at all, not if he was the attorney for the judgment creditor with the LIEN against the property.

You are stuck on the nature of the ORIGINAL debt - from credit cards. Once a debt is reduced to judgment and a lien goes against real property, its a new animal entirely.

And, before you go off on your next rant, I HAVE asked a NEW YORK attorney and he confirmed that the judgment creditor with the lien CAN forclose and sell the property to collect on the judgment ! He's even done it a few times himself.

Why doesn't a judgment creditor forclose more often ? Who knows, but it DOES happen. I'd be willing to bet the top reason for it is the equity, or lack thereof, in the property. If there's not enough equity in the property to collect on the judgment, then they're wasting their time. In your friend's case, with 100% equity -- she'd be toast.

 

[You Are Guilty]

And, before you go off on your next rant, I HAVE asked a NEW YORK attorney and he confirmed that the judgment creditor with the lien CAN forclose and sell the property to collect on the judgment ! He's even done it a few times himself.

Make that two.

Why doesn't a judgment creditor forclose more often ? Who knows, but it DOES happen. I'd be willing to bet the top reason for it is the equity, or lack thereof, in the property. If there's not enough equity in the property to collect on the judgment, then they're wasting their time. In your friend's case, with 100% equity -- she'd be toast.

Typically, that is the case. For the most part, the folks who tend to amass enough debt to the point where creditors are looking to foreclose are ones who love the "1% down, interest-only mortgages" and are way upside-down on the property, making foreclosure an exercise in futility.