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C.Fortunato
C.Fortunato, Lawyer
Category: Real Estate Law
Satisfied Customers: 8023
Experience:  Expert in Landlord/Tenant Law. Licensed Real Estate Broker.
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I pledged a rental property as collateral for a business loan

Resolved Question:

I pledged a rental property as collateral for a business loan ($200K). The property is owned with my wife (tenancy by the entireties) My wife never signed the mortgage and bank note/personal guarantee. The loan officer was aware of her refusal to sign and still approved the business loan because of a large account balance and solid business plan.

Unfortuantely, I filed Chapter 7 for the business after 5 years of losses and also filed Chapter 7 for me. My debts were discharged last August. I learned that the lender placed a lien on the rental property but it was incorrectly recorded by the County or Title Company (it is shown as Unit 8707 instead of 6207).

What possible legal action/recourse will the lender pursue in the Florida State Court? Will they file suit against the Title Company? Then, will the Title Company sue me over this property dispute?
Submitted: 4 years ago.
Category: Real Estate Law
Expert:  C.Fortunato replied 4 years ago.

Hi JACustomer,

Was the lien placed before or after your Bankruptcy case?

Customer: replied 4 years ago.

Before

Expert:  C.Fortunato replied 4 years ago.

So it is now too late to correct the error, because that debt was discharged.

The lender can sue the title company for the error.

However, since the debt was discharged in your Bankrutpcy, neither the lender nor the title company can sue you for anything.

 

I think this is what you wanted to know. If not, please let me know.
Thank you.

 

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