is it true?

[bluebeta123]

I was told by springboard.org today if i stop paying cc i have no money left. that they could put a lean on my house./ so to first start with loan mod

[yomann]

CC debt is unsecured debt - they cannot put a lien on your house.
To do anything, they first have to get a judgement against you.
This usually happens after 6 months of missed payments.

[faith]

I was told by springboard.org today if i stop paying cc i have no money left. that they could put a lean on my house./ so to first start with loan mod

Hello,
Most homeowners that are behind on their mortgage payments, are also behind on their credit card payments. On top of foreclosure worries they get calls from credit card companies. They are trained to harass customers and wants people to be afraid of them. They want you to feel desperate and helpless and to think that they are going to get your house and make your life miserable. Can credit card companies file a judgment lien against your home, which is your primary residence. There is nothing they can do to affect your home. They can ruin your credit, send you to collection agencies, call your employer, your spouse, friends and every phone numbers you have given them but you can always tell them to stop calling you and not to harass you or change your phone number.

This link might help you about credit reporting.
FCIC: Fair Credit Reporting


You can call real estate attorneys but to answer your question you have to make an appointment and pay that lawyer his hourly rate of probably $150 per hour.. Or you can call your county recording office (Official Records)and ask them where you can file a Notice of Homestead, they normally has the form, I got mine at a local Bookstore, completed that form and file it in my County Recorder's Office.

The credit card company can still try to put a lien on the property for non-payment of bills. The court issues the judgment and notifies the homeowner. Then, if it is your primary residence you file a notice of homestead. (Designation of homestead by owner before levy), if the credit card company put a lien on your home, this lien can be removed by filing this notice of homestead. Credit card companies know it and rarely try to file any judgment against a homestead property (primary residence). To learn how it works in your state, check your state statutes. If you don't know how, call the courthouse or your county recording office.
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If the house is not your primary residence, the credit card company can put a lien against your property. But they have to take their numbers first, if you have two mortgages, this new lien will take third position. If you decide to do a short sale, the first will be paid first The first mortgage is in charge. After foreclosure sale, all of the liens after the first are wiped out. If there is something left over, if any, the second mortgage will take it. So, even if you get a lien attached by your credit card company, nothing to worry because it is still good.

Source:Foreclosure and Credit Card Issues

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God bless and take care.

[starspire]

Credit cards are unsecured debt (unless they are HELOCs), but I have seen them reach right into some of my Clients bank accounts to take the money that they are owed under an obscure agreement in the original contract. These were Banks where then Clients had their account, but also had a credit card with the same Bank. Watch out for that, before ignoring them.

[seashells48]

These companies can also 'freeze' your bank accounts. After my father died, my mother kept getting notices from some company she did not recognize. Turned out it was an old CC debt of my dad's that was sold to one of those 'bottom feeder' collection agencies. They froze her bank account about 30 days after my dad died. It took a court order to get it undone.

[SillyWorld]

I have seen Leins put on Auto's if ypu own one they can Lein on it and yopu can never sell it untill the Debt is paid off, same for Boats campers ETC

[AzGryffindor]

Considering that most of us on here have negative equity, just how profitable would it be for a collection agency to go through the judicial process to get a lien?

There are also homestead acts in most states that protect homeowners property. In AZ we are protected up to $150k in equity on our homes. In FL and TX they can't touch your house at all (part of the reason why OJ moved to FL).

Can they go to court and get a judgment? Yes. But, the process has to be done legally. You must be served legally. You have the right to appear at the hearing to defend yourself. If the debt is out of the statute of limitations you can argue an Affirmative Defense.

Of course, there is also BK which will wipe out all debts, including judgments (except for student loans, most taxes, child support & any other debt you may owe any government entity).

[Tarot]

Credit cards are unsecured debt (unless they are HELOCs), but I have seen them reach right into some of my Clients bank accounts to take the money that they are owed under an obscure agreement in the original contract. These were Banks where then Clients had their account, but also had a credit card with the same Bank. Watch out for that, before ignoring them.

Can they take money out of retirement accounts? It's not my problem, but a colleague. She has a HELOC of $90,000 from the same bank that holds our retirement account. She has $30,000 in the retirement acct. We can't move our retirement funds and she's worried sick that WF will take her retirement money to pay the HELOC. Is that possible?

[AzGryffindor]

Can they take money out of retirement accounts? It's not my problem, but a colleague. She has a HELOC of $90,000 from the same bank that holds our retirement account. She has $30,000 in the retirement acct. We can't move our retirement funds and she's worried sick that WF will take her retirement money to pay the HELOC. Is that possible?

Tarot: Yes it is possible and yes, they will do it.

A few years back we let a car we financed with WF go back to them. We also had a checking account with them. WF dove right into our checking account and took everything. Unfortunately, this caused a check we had written to the IRS to bounce!

It's called the "Right to Offset".

[pookey]

Can they take money out of retirement accounts? It's not my problem, but a colleague. She has a HELOC of $90,000 from the same bank that holds our retirement account. She has $30,000 in the retirement acct. We can't move our retirement funds and she's worried sick that WF will take her retirement money to pay the HELOC. Is that possible?

It partly depends on the kind of retirement account it is. If it is a IRA, yes, they can probably take it. If it is a company plan then I believe it would be safe.

Here's a link to a CPA site that explains some of this - The CPA Journal

[Tarot]

It's a company plan. In any case, she can't move it.

[pookey]

It's a company plan. In any case, she can't move it.

If you read the CPA article from my previous post you'll see she doesn't have anything to worry about.

[lpinlb]

Hi all - my partner had a judgment filed against him by Chase for $10K he owed on a cc he stopped paying when we had problems making our mortgage and they jacked the interest rate. My question is, if they have the judgement, is there anything we can still do to negotiate the amount down? They froze his bank account, although it had less than $200 in it but I am wondering what recourse they still have and what we should do in defense.

[seashells48]

Yes, you can still try to negotiate the amount - but it is up to the bank. The bank account will stay frozen until you reach some sort of agreement/settlement - unless your only income is from social security or a pension fund. They can't touch that. Don't know your situation, but is bankruptcy an option?

[Whittier]

It partly depends on the kind of retirement account it is. If it is a IRA, yes, they can probably take it. If it is a company plan then I believe it would be safe.

Here's a link to a CPA site that explains some of this - The CPA Journal

Don't know about other states but in CA all retirment $$ are protected......

I learned this during the OJ trial. Everyone wonder how they Goldman's couldn't collect and he was living the life...asides from comp free stuff OJs $$ was secured to a retirements account, which started to pay out at 52 yrs of age (old retirement age, then it went to 55, then 62 and I think now it might be 65).

[st7sc7]

I had a judgment against me for a credit card and they put a lein on our home. If I had done my home work in Colorado you have 6 statu of limitations and this credit card was way past 6 years. I could have fought and a lein would have nerver put on my house. All I can say is learn talk to people get on the internet find out as much as you can.

[LostVegas]

Don't know about other states but in CA all retirment $$ are protected......

I learned this during the OJ trial. Everyone wonder how they Goldman's couldn't collect and he was living the life...asides from comp free stuff OJs $$ was secured to a retirements account, which started to pay out at 52 yrs of age (old retirement age, then it went to 55, then 62 and I think now it might be 65).

Along with that, most of O.J.'s expensive property was in Florida which has tight homestead laws against creditors. I think Madoff took advantage of that too.

I also had a credit card get a judgement against me, no lien on the house and if they did, no equity or money to pay it so oh well.......

One of the things I've learned from this situation is that I may not be looking only into the weather/climate/scenery and things like that in my future retirement state.......but also looking into who has the best consumer protection laws, the best BK laws, non-deficiency laws, what the foreclosure rules are, homestead laws etc......

Not that I intend to need them......but the problem is that most people don't know their own states laws regarding these matters till they need them and then it's too late.

[st7sc7]

Your right I didn't know my state laws and I got screwed over I learned the hard way.

[Marlin]

I have recently got the notice for credit card dues from my bank as well, that too coz I haven't paid my installment last two month. Although I am finding the way to make out the way to do the payments.

[LMG462]

For those that have had their bank accounts frozen, was this with a bank that also holds the account with the defaulted cc? I am assuming if I change banks to one I have no personal debt with my money will be safe. This is of course not considering a judgement.

[imlars]

Credit cards are unsecured debt (unless they are HELOCs), but I have seen them reach right into some of my Clients bank accounts to take the money that they are owed under an obscure agreement in the original contract. These were Banks where then Clients had their account, but also had a credit card with the same Bank. Watch out for that, before ignoring them.

I defaulted on a cc that the bank talked me into getting when I went into the bank to refinance my car because I couldn't afford the usual payments any longer due to a change in employment. I was making the payments fine until the bank decided that it was going to apply my debit card purchases before it cleared my payroll check. The fees ate up both my cc and car payments for that month. I was assured that they would make arrangements for my car payment to be late but not accrue a late fee, which they did not, so I haven't made a cc payment since.
They did get a judgement against me, my once good credit score now ****s, but s**t happens. I barely survive on what I make now and cannot afford to make cc payments to the bank that "saw me coming". It's been about 2 years now, they haven't gotten into my bank account as of yet, but its probably coming. My employer direct deposits my checks into my account, even though it will be a major pain to get all of my automatic payments moved, is it time for me to seriously look into moving my bank account?