Can a bank put a lien on my house?
December 1st, 2006 by Questions
Can a bank put a lien on my house for the 100g’s I owe on my line of credit because I have been kicked out of my bank? Does the lien mean the bank can sell my house or does it mean that when I SELL my house I have to pay the lien off the sale of the property?
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December 02, 2006 at 7:05 am, A licensed trustee said:
If your line of credit is a secured line of credit, the bank already has a lien (ie. a mortgage) on your house. If the line of credit is unsecured, the bank can only put a lien on your house if either you give them permission to register the lien, or if they go to court, sue you, and get the court’s permission to register the lien.
Once the lien is registered, it’s up to the bank how they deal with it. They could simply wait until you sell to get their money, or if there is sufficient equity in the house they could foreclose and sell the house to get their money.
If you have significant debt and have been “kicked out of your bank”, I would suggest you contact a licensed trustee to determine what steps can be taken to deal with your debts.