Real Estate Question?

If it was covered under the BY, go to the attorney that handled it, and they can get a release. They should have done this at the time of the BY. You paid them to do the job, and they should have done it.

And when you applied for the loan, if you provided the BY papers, they would have incurred and it would have been handled by the title company during the transaction.

First, let's make sure all of the facts are correct.

In this order, you need to know what the bankruptcy, and foreclosure laws are. Laws in judicial foreclosure states (Like, where I am in Colorado) will be much different than those in say, California, or possibly South Carolina.

Next the general rule for a bankruptcy is that it will appear in the credit record , and can only be counted as bad credit against someone, for the period before the discharge. Then, the bankruptcy wipes the debts off the books, and the record of the discharge stays on the credit report for 7 years. This, although i am not playing attorney, is written in the US (meaning Federal = highest law in the land) bankruptcy code.

With these two items understood, you then have the mechanic's lien to figure out. If this lien was in fact discharged with all other debts, then, the law on the filing of a lien would be the precedent law. Again, I am not an attorney, and specifically not a SC attorney involved with handling such matters. If the lien was filed, and a judgement was obtained, then the lien may be able to stand against the property until paid. If the contractor was out of business, it would be possible to remove the lien on that basis alone. However, a new lien and judgement might have been filed. If Mom ignored a court document served to her by the contractor thinking the item was already done, and did not reply to the court's request for a response, then the court probably awarded a summary judgement against Mom. Again, i am not an attorney, and am not playing lawyer. I am only stating some observations of similar things I have witnessed here.

the reason a loan isn't being granted, is because the lien presents a cloud on the title, and the bank would involuntarily be placed in the 2nd lienholder's position. This could allow the contractor to foreclose on the property and acquire it for the price of the lien.

The order of the liens against a property is very important, and lenders will not place themselves into a losing proposition. The lien could also be showing up on her credit file and lowering the scores below a credit approval threshold. Again, and I cannot say this enough - this is not intended to be a legal opinion. The laws in your state are different in some respect than in mine. I understand and have to work with Colorado law all the time. In order to fully understand the situation you will have to do some research n how liens are filed, and you will need to completely review the bankruptcy orders of the courts, and also take a look at SC foreclosure rules while you are at it.

I hope this at least sheds a little light in that dark area.

My best to you, and good luck!

The bankruptcy judge is a federal judge. She has the right to remove the lien from the house if it was properly listed in the bankruptcy and that creditor was given the privilege of addressing the court about the lien. Go back to the judge..

So the home improvement loan was in with all the other debts of the bankruptcy? If so, all you need to do is take all of your papers to a real estate attorney and they can file the release of lien for you. You can also contact a local title company and inquire as to exactly what documentation is required.

In SC, you can wait a year after obtaining the Discharge and have the judgment expunged. I would suggest having your mom contact her original attorney to have this process started or see if it is necessary. Make sure she goes to someone who specializes in Bankruptcy as they are more likely to provide an answer if three other attorneys have not. Try contacting the SC State Bar's Lawyer Referral Service for an attorney in your area. When you contact the attorney they refer you to, let them know what type of case it was and when the discharge was obtained. You should also have a copy of the schedules that were filed (or at least know the case number) to expedite the process.

YOU did not volunteer why she did not sue the firm. THEY can't file a lien if they are fly by night.

THEY need to be sued-=-and if they do not have a contractor's license,

their lien is useless and a court will make that lien void.

AND you do not need an atty to go to court; the atty can

simply expedite things and can force a reconciliation favorable to her.

so, take the time to see if the builder has a license and if he does

she him for fraud. It is easy to prove; you retain a licensed consultant and when they show that you did not get what you paid for,

the lien disappears.

That solves the lien.

to get a loan, the bk disappears after 11 yrs or earlier and

many lenders will lend much sooner if the equity or down payment is there.

hey you should go to the bankruptcy court to have it removed or figure out the Solution.

If three lawyers cannot give you an answer, it will be very improbable that you are going to get one from here either./