Up ahead, a signpost. It reads "The Twilight Zone. er, eh, I mean California.
Is there some way to stop a refinance process in its tracks after signing all paperwork? After 2 weeks?
It would give me a chance to look into my options for dealing with lien holders/collection agency.
Would a Chapter 7 deal with a lien on a home?
I read that a "motion to vacate" a judgment can be filed if you have good cause to believe you were
sued in error, were exempt because of retirement or SSI or served improperly.
My mom put me on the deed to her home in 1995 just in case something would happen to her, god forbid.
Bad move. We should have done a living trust or something else, I learn much later.
I presently have a lien on our home from a judgment won by a collection agency for a credit card debt.
It was originally a $5,000 credit card debt that has grown to just over $10,000.
I had an accident in 1996 and could not keep a grip on all my responsibilities.
Now I'm trying to climb back on the saddle and repair my credit and make a deal with this collection agency.
They are the only creditors to file against me. I've made payment arrangements with all the others.
Mother with sister's prodding starts a refinance process to fix up the house.
I live about 20 miles away with my wife and children so can't keep an eye on her all the time.
She is pushing 80 and entering her second childhood which makes her an easy mark for
unscrupulous agents and well meaning sisters.
She calls me one day and asks me to come down to a brokers office to sign some papers.
I try to talk her out of it but she is determined. It is her house so I sign the papers.
A week later the escrow company says there is a lien against me and my share of the house (50%) and that I should try
and make a deal with said lien holders so that everyone can get paid. The agents, the current mortgage co, etc.
A few days later one of the loan agents with a very friendly voice says there are some papers to be signed so that
they can hold the monies until the lien is cleared. A voice that nice would never hide an ulterior motive right?
Upon close inspection it is an Indemnity Agreement which means they can now record the above deal even before I can deal
with the collection agency. I think it means they put my mom in shackles so she can't get out of the refi deal if she wanted to.
Once recorded the collection agency might be able to see such activity and clamp down hard.
Everyone is in line with hands out. Maybe they should have made sure there was a clear shot to the title before they
did an appraisal, etc? duh. The payout after all the fees etc. will barely get her car fixed.
Seems that nice voice from the escrow company is not looking out for our best interests after all eh?
Bare with me.
When I called said collection agency to make an offer to close the books the agent said she could not make that decision
and that I should fax a proposal to show her boss.
I feel like a goldfish in a tank of sharks. These guys are pros. I hope to get through to a human being who will be
reasonable. But once they smell blood they go in for the kill. I had better learn some negotiating techniques now.
I am so angry at myself first and foremost for not learning about business and how it works.
But sometimes those close to you do things to exacerbate "solvable problems" into "total fiascoes".
Information is power if you get it in time. I am a nervous wreck but I wont let them kill me without a fight.
Ignorance is not bliss. If you don't understand how your finances work, I beg you to bone up on it now
before something comes along and knocks you for a lulu. Your future will thank you.
And a big Thank You to all the folks who contribute to this amazing board.
I have learned so much here in such a short time.
I only wish I would have found it earlier. Bless yous all.
try posting this on www.freeadvice.com . go to the forums, then scroll allllll the wayyyy down to the real estate law section, sub section buyin and sellnig a house. There may also be a refi subsection but I don't remember. These guys can be real smartalecs, so you have to suck up to them and ignore baiting. also try searching the posts.
The CA is in first position with the lien. The mortgage company is second behind them. You should pursue a cash settlement and have it paid from the refi proceeds.
A lesson for the future: Unless you have your OWN lawyer to consult for a purchase or refi you are asking for trouble. Stop signing papers you don't understand and see a professional. No forum is equipped to give the help you need without seeing copies of the contract you are being asked to sign so that your full liability can be evaluated.
Thanks for the replies folks. I finally got a lawyer who will try and negotiate.
I also have an appointment with a BK consultant just in case the above fails.
Now I need to find one to stop the refi deal in it's tracks if it can be done.
I'll never ever again sign anything without taking it home, reading it myself,
then let a lawyer look at it. Until I can recite it verbatim.
Anyone notice how you are handed a pen and expected to sign on the spot?
If they have nothing to hide they shouldn't get huffy when you ask if you can
take it home to look it over first.
I'm glad I'm learning an important lesson but sorry it happened over such a big
ticket item like a home mortgage. One of the biggest things you will ever do.
The BK would include other debts not mentioned here as a last resort.
I would go there only if negotiations fail to bring about a reasonable settlement.