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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12204
Experience:  JD, MBA
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I bought a house in Upper Darby PA in May 2006. For several

Customer Question

Hi! I bought a house in Upper Darby PA in May 2006. For several years I did not pay anything towards the principal. The company closed my line of credit which was fully paid for and because they knew I needed money to renovate the house they loaned me 25,000 and put it in the mortgage. The original mortgage was 85,000. Todate I still owe 97,000. On top of all that at the settlement table they made me pay 10 points. They also put a lien on my own home and another rental property which I own. I could not sell any of all these houses to help myself because of these liens. The houses are in good condition and although they are now below market value, they generate good income, and I would like to keep the house if they modify the loan. Is there a way I can sue to remove the liens from my house and my other rental property.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: PA
JA: Has any paperwork been filed?
Customer: Not regarding the removal of the leases. Also I filed for bankruptcy last Dec because I owed taxes for the same house and I was going to loose it to the Tax Bureau. If that had happened then this company would have followed me on my two homes.
JA: Anything else you want the lawyer to know before I connect you?
Customer: That I feel the mortgage company were fraudulent and took advantage of me. I have put more than $100,000 towards this house so far and I feel a loan modification can safe me
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  TJ, Esq. replied 9 months ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

You mentioned fraud, and that could be a reason to have the liens removed. Did you not actually sign for the loans? Did you not accept the funds? In what way were you defrauded?


Customer: replied 9 months ago.
Everything was done in a hurry and I did not have a lawyer. I did not understand the meaning of liens at the time and they took advantage of me and closed my line of credit. How can I get the liens removed?
Expert:  TJ, Esq. replied 9 months ago.

Hello again.

I'm sorry to say that rushing through the process so that you fail to obtain legal counsel or to fully understand the transaction is not a viable defense to paying on the debts, and it's certainly not fraud. If I understand you correctly, you signed the contracts and accepted the money from the lender. Accordingly, the lender is entitled to be repaid per the terms of the contract.

That said, if you can't pay and the lender's only alternative is to foreclose, then it's possible that the lender may agree to modify the terms of the loan. This assumes that the lender would prefer not to foreclose. This is most often the case when the property is "underwater" (i.e., the property is worth less than the total debt). The reason the lender may be willing to modify the loans under that circumstance is because the lender will take a loss if it forecloses and sells the property for less than the debt. So you may have that small amount of leverage.

But in general you cannot remove consensual liens under the circumstances that you suggest. A judge would tell you that you should have simply refused to sign the contracts until you obtained legal counsel or otherwise learned the meaning of what you were agreeing to do.

I am truly sorry that my answer is bad news for you, but please understand that it would be unfair to you (and unprofessional of me) to provide you with anything less than an honest response. However, if your concerns were not satisfactorily addressed, then please let me know, and I will be happy to clarify my answer.

Also, despite the bad news, I would certainly appreciate it if you remember to provide a positive rating via the stars, as it is the only way that I'll get credit for answering your question(s). Thank you. :)

Expert:  TJ, Esq. replied 9 months ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue.

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