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I have a lien against my house from a credit card debt. The amount is about 13k and they are willing to settle for considerably less - about $6600. Meanwhile, the Dept of Transportation is taking part of my property and is aware of the lien. The question is: How do I get the 13k from the DOT but pay the lesser amount offer from the credit card co.? Does the money paid from DOT go to the sheriff's office or me? Credit card co. is sending the offer in writing and it will be on the table for 30 days. Any advice?
Also you might want to keep in mind that there is a pretty good chance the credit card company is going to send you a 1099 for the difference on the settled amount which you will have to claim as income.
DOT is taking some of my road frontage & I owe them nothing. If they pay me 13k for it while I'm renegotiating with the credit company for a lesser amount I want to know what happens to the difference.
I would think it is two separate things and the CC company will have no idea what you are negotiating with another company for, unless you told them.
The only time the lien would come into play is when, of if, you sell the home it's self.
It would be advisable to contact an attorney, or a paralegal... I like to use paralegal's when I can, they can get you the same information for a fraction of the cost.. They can't practice law, but their information will be the same.
I am not sure why getting an attorney is being advised here. The only way to remove the lien is to pay it. The question becomes do you pay 13k or 6k. The credit card company will only care if they find out the DOT is involved. If they find this out you can bet they will be asking for the entire 13k. This means you need to come up with the 6k before the DOT transaction takes place or if the DOT transaction is within the 30 days present them with the letter from the CC company and they will present a check for the 6k in exchange for a recorded release. The DOT only wants a clear title and does not care if the money goes to you or the CC company.
If you are able to front the $6K, payoff the credit card now so they release lien, then close your deal with DOT. DOT will not close subject to a lien-I can fairly assure you that. Then you get the $13K when the transfer to DOT closes.
You may be able to work it out with DOT and the credit card company that they close into an escrow (tho I wouldn't hold my breath and would definitely probably require involving a lawyer to coordinate it all which will eat up some of your proceeds) where you deliver the deed to DOT, credit card delivers lien release--->and when escrow breaks the escrow agent records the lien release, gives DOT clear title, pays off the credit card (whatever arrangement you made with them) and you get whatever is left. If you aren't able to front the $6K, this would be your only option because DOT will not take title subject to a lien.
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