If my car was refinanced and a lien was put on my house as a security but my later house was foreclosed on, what happens to the lien?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my car was refinanced and a lien was put on my house as a security but my later house was foreclosed on, what happens to the lien?
And what if the car isn’t paid off by the time the loan matures? The interest rate is 16.75 so it’s taking forever to pay it off.
Asked on November 1, 2011 under Bankruptcy Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Good question. If you refinanced your vehicle and as security for the loan your home was used as security for the car's purchase and you ended up losing your home in a foreclosure, the lien for the car's loan was wiped out assuming the lien was a junior lien to the one that foreclosed upon the home.
The result is that there is no security left for the loan, but the lender for the car can sue on the promissory note for the loan if the car loan is not being kept current. If the car is not paid off by the time the loan matures, then the full remaining amount is due and payable.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.