Trying to refinance, Please help

[choosinu]

What is the name of your state? California


Judgement filed in 1995 (HOA dues) unsecured non-priority was discharged in 1996 Chapter 7. Attempting refinance on property purchased in 2003 and title shows judgement. When escrow sent for info, they received response back that showed the amount and a statement that says, this is not an attempt to collect a debt, as debtor received discharge Chap7. It is a response to your demand inquiry. Then it goes on to say that they will file a release when payoff from escrow is received.

Do I owe this? Why has it not been on credit report etc. No issues when I purvhased the home. If they admit that debt was discharged how can they refuse to release until paid?

 

[unapathetic]

Sue for quiet title, geterdone

 

[HomeGuru]

What is the name of your state? California


Judgement filed in 1995 (HOA dues) unsecured non-priority was discharged in 1996 Chapter 7. Attempting refinance on property purchased in 2003 and title shows judgement. When escrow sent for info, they received response back that showed the amount and a statement that says, this is not an attempt to collect a debt, as debtor received discharge Chap7. It is a response to your demand inquiry. Then it goes on to say that they will file a release when payoff from escrow is received.

Do I owe this? Why has it not been on credit report etc. No issues when I purvhased the home. If they admit that debt was discharged how can they refuse to release until paid?

**A: no, you do not personally owe the money since the amount was discharged in BK. And yes, the amount is recorded as a judgement lien on the property. The bottomline is that the amount will get paid off during a refi or sale. End result being that you will still pay for it via equity in your property.

 

[BriantheBanker]

????

So you sold the house that had a HOA judgement on???? Then bought another house in 03??? Did you sell the house from 95=96???
If the HOA had a lien on the other house, the account should have been cleared by escrow at close (to transfer clear title.)
If you bought in 03, call the original escrow company to insure new transaction.
btw: i can't spel . so don't bother postin bout my spellin', ya'll!
good luck,

BriantheBanker

 

[BriantheBanker]

also,

A bk discharge does not remove the lien position of HOA. But, old Escrow from 03 should insure.

btb

 

[nextwife]

If this debt was discharged in the BK, you should see if the title company will provide the lender affirmative coverage ("insure over") over this matter. Can you provide them a copy of your discharge papers including the list of creditors?

 

[BriantheBanker]

underwriter worries

Yes, You could ask for the title policy to read with exceptions, but because the debt is title affecting, the underwriter will most likely NOT insure over.
The original escrow office insured the purchase in 03, they may insure over. the problem is that the lien would have been added after close (in 03.) You may end-up having to pay the lien for a release (if there wasn't a sale on the 'old' house.)

Yikes!!!!! Pay your HOA dues...

BriantheBanker

 

[nextwife]

Yes, You could ask for the title policy to read with exceptions, but because the debt is title affecting, the underwriter will most likely NOT insure over.

Been there, done that.

If a debt was, in fact, properly discharged in the bankrupcy proceeding, (but releases to record not obtained in an additional "step" following the BK), and can be proven so by documentation, title underwriters can and do regularly insure over such debts. I can name at least three national underwriters I KNOW have done this.

 

[BriantheBanker]

I need that number

the next time I have a lien that won't discharge, I'm calling you.
A BK Discharge does not release the lien. If you have underwriters who are insuring over, they are brave.
I too have had some luck with persuading underwriters, from time to time to insure over items. To say (they) regularly insure over liens seems like a stretch.
In business, anything is possible. If you try hard enough, you will find someone to do what you need.
Good point.

BriantheBanker

 

[nextwife]

To say (they) regularly insure over liens seems like a stretch.

"Insuring over liens" is NOT the same as insuring over liens which were discharged in a federal bankrupcy proceeding.

 

[BriantheBanker]

???

Please explain the difference.