Selling My Nyc Co Op With Credit Card Collections

cuegis

LoanSafe Member
Hi,

I own a co op in Manhattan that I will be selling in the spring.
I am trying to think of everything possible ahead of time so that there will not be any surprises that could possibly hold up the closing.

I noticed from a recent Transunion credit tracker that I have 3 credit cards in collections from around 2009.
The statute of limitations in NY State is 6 years.

Once I have a closing date set, will this information appear one way or another?
Will it appear on a title search which has to be done before I can have a closing?

Would it prevent a closing from taking place, or hold it up.
Also, are there any other things that could possibly show up , at the last minute, out of the woodwork to create any problems with going through with the closing.

Do unsecured credit cards that are in collections show up on a title search?

Thank you
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Good day Cuegis!

I understand that selling real estate can be stressful, and you want to make sure you have all your bases covered.

In regards to credit related items showing on title, that can only happen if they were to sue you to win a judgment and then possibly place what is called a property lien on your coop. These liens may be placed on a property by creditors and are also known as judgment liens. In order to obtain a judgment lien, a creditor must sue you and obtain a valid court judgment.

With that said, even if this was to happen, this will most likely affect the sale minimally because all that has to be done is that it is paid through escrow and will be taken out of any funds that will go to you.

If they do not have a judgement and lien now, I wouldn't worry about it because it will just affect your credit and ability to obtain credit, but not the sale of your coop.
 

cuegis

LoanSafe Member
Good day Cuegis!

I understand that selling real estate can be stressful, and you want to make sure you have all your bases covered.

In regards to credit related items showing on title, that can only happen if they were to sue you to win a judgment and then possibly place what is called a property lien on your coop. These liens may be placed on a property by creditors and are also known as judgment liens. In order to obtain a judgment lien, a creditor must sue you and obtain a valid court judgment.

With that said, even if this was to happen, this will most likely affect the sale minimally because all that has to be done is that it is paid through escrow and will be taken out of any funds that will go to you.

If they do not have a judgement and lien now, I wouldn't worry about it because it will just affect your credit and ability to obtain credit, but not the sale of your coop.
Thank you for your response.

In the past, the few times I received a court notice of a lawsuit from a credit card, I always went straight to the courthouse and made a date and saw it through, and always got a "dismissed without prejudice" signed by the judge. So i know that I do not have any judgements against me.

I just have 2 credit cards in collections.
Thank you for assuring me that this will have no effect on the closing of the sale of my coop.

But something strange happened yesterday.
I went to the NYC Dept. of Finance and used one of the their exclusive computers to do a lien search on my property.

There were only 3 entries.
1- A UCC1 filed in 2003 from Chase when I got a new mortgage
2- A UCC3 filed from Chase in 2007 when I paid off the mortgage in full
3- A UCC1 filed in 2007 from Citi when I refinanced my coop and paid off the previous mortgage.

What I am confused about is that I took a Heloc from Citi in 2005 and , of course, it should be secured against my home but, there have been no UCC1 filings in my record for this loan.

On a side note, in 2013 this Heloc was modified through the Hamp 2MP program.

But nothing regarding this loan is present on a lien search.

When I sell my home, and they do a lien search, is this not going to appear and therefore a check will not have to be presented at the closing?

When a home is about to be sold, are there any public notices that get sent out that could possibly be seen by various debtors like credit cards, or this Heloc?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
You are welcome Cuegis. Sorry for my late reply, I'm currently in the process of a move from California to New Mexico. I'm currently in a hotel in Yuma, Arizona.

The lien will most likely be found through a full title search. Most liens are found when a home is sold and a professionally paid title search is done on the property. But you never know, maybe they don't find it and you just got a free HELOC. It could happen, but I would not bet the house on this happening.

When a home is sold, the only notice that goes out is to the local real estate multiple listing service by listing the property as a pending sale. Then when it is sold, it is listed as sold and the new owner and deed is recorded with the county recorder.
 
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