If we have a personal lien on our property for an unpaid debt, can we sell the property?
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If we have a personal lien on our property for an unpaid debt, can we sell the property?
We bought a new vehicle several years ago and ended up doing a turn in on it. We financed 20k and only had it less than a year. We had never missed a payment but ran into hard times. We informed the finances company and turned the vehicle back into them. A few months later we receive a bill from a lawyer in the amount of 14k. They had auctioned the new vehicle off for less than 4k and demanded that we pay the balance. We were unaware that they auction it off. We could have sold it ourselves. They attached a lien on our property for that amount and we want to sell. What can be done about this?
Asked on September 14, 2011 under Real Estate Law, Mississippi
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If there is a recorded abstract upon your property resulting from the auction of your vehicle, it is a lien that will continue to accrue interest until it is paid off. You can sell your proeprty to a willing buyer. Assuming the property goes into contract and an escrow is set up, a demand for pay off will be sent to the judgment creditor by the escrow company concerning the judgment stemming from the auction of your vehicle.
The judgment creditor will then submit a pay off demand to escrow. Assuming that there is enough equity in the property, the judgment will be paid out of escrow and you will receive a full satisfaction of the judgment for payment of the judgment to the judgment creditor.
Good luck.
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