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Hi In a terrible situation, and yes we have a lawyer. My MIL passed away and left her house to her 3 adult children. Title was transferred to their names. Now; one daughters who has been living in the house for the past 5 years has not been paying her bills. A lien against the house has been placed by Capital One. There is no mortgage on this house. Talking to the lawyer from Capital One; a bank date is one month away unless my husband pays the $10,000.00 lien on the house. If we allow the bank to take it what will happen to the residue of the sale. We are sure there are other upcoming liens as well. SIL is not talking to us to find out. Thank you for your thoughts.
The other adult children on the deed pay off the lien. In return, the person who generated the lien turns over her share of the house to her siblings and her name is removed from the deed.
Then a decision can be made as to whether she continues to live in the house and under what terms. I would insist, if she stays, that she pay rent, with a formal lease.
The alternative is to sell the house and for the sister who is the debtor use her share of the proceeds to pay Capitol One.
CAPITAL ONE IS A LENDER -- THEY SHOULD NOT BE IN THE PICTURE IF THERE IS NO OUTSTANDING MORTGAGE!
Need to clarify why Capital One has filed a LIEN on this property!
The OP really really does not seem clear AT ALL about "bank taking property" and if they have an attorney they need to a BETTER ONE THAT CAN EXPLAIN WHAT IS HAPPENING ASAP!
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,243,006 times
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Quote:
Originally Posted by chet everett
SOMETHING IS REALLY NOT RIGHT HERE AT ALL!
CAPITAL ONE IS A LENDER -- THEY SHOULD NOT BE IN THE PICTURE IF THERE IS NO OUTSTANDING MORTGAGE!
Need to clarify why Capital One has filed a LIEN on this property!
The OP really really does not seem clear AT ALL about "bank taking property" and if they have an attorney they need to a BETTER ONE THAT CAN EXPLAIN WHAT IS HAPPENING ASAP!
A credit card company can get a judgement and place a lien, but cannot force a sale. They can only get paid when the home is sold. I wonder if this person was somehow able to get money from Capital One as a home equity line of credit or mortgage as only part owner.
Yes my SIL had a credit card prior to her mothers passing. She does not work, the hydro has been shut off for 5 months now. The will stated the she is allowed to live in the house until she no longer wishes or unable to afford maintence on the house. She was left a large sum of money as well and has lived on that up to 2 years ago. We got a lawyer and have given her an eviction notice but refuses to leave on her own. She also refuses to/ can't buy any of the brothers out. Our own lawyer has started court procedings to remove her from the house.
The unfortunate part is Capital One only let us know of the lien last week, but have been sending her notices since January. If we pay it off we do not know of any more upcoming debts and will continue to build debt into the house.
We have completed a lien search and so far this is the only one that has been registered. Capital Ones date to pay is in 2 days and they have a court date of October 30th.
So if the bank gets their $10,000.00 what happens to the residue?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,243,006 times
Reputation: 57825
If there are no other liens, and it's sold, the court may include attorney fees but what's left over would go to the owner (s) and you will probably all have to pay capital gains tax on it. Since you have a lawyer already for the eviction, you should ask them for advice on the lien sale. With the home being in all of your names I would expect the lien sale to be on all of your credit reports, it would be to your benefit to pay of the SILs debt, evict her, sell the house and deduct the debt from her share.
Thank you Hemlock. What a stressful mess. We have paid the house insurance for the last 4 years, deliquient taxes and lawyers fee's. Can't wait for this to be over. At my MIL's passing we tried to remove my husbands name from the title of the house with no luck. All 3 children were left executers!
In the US, the basis of the house would be its value at the time it passed to the heirs. Any capital gains tax would be only on any increase in value since the property was inherited, and the person actually living in it most likely would owe none.
I have no idea what rights Canada has for those family members that have allow a fellow heir to illegally use a home that they are only a partial entitled to for relief.
Consulate with a barrister about the "residue".
If this were the US the lien likely cannot be sustained and the creditor is out of luck for extending revolving credit to an incompetent debtor.
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