Can a Credit Card Company Put a Lien on Your Real Estate Property?

If you have any credit card debt it's all unsecured. This means that the credit card company does not have any collateral, such as a house or an automobile that they can take or repossess if you don't pay them. That's why a number of creditors will only lend you a certain amount of money if they don't have any collateral.

When they increase the amount that they lend they are increasing their rate of risk. If you don't repay a loan they will eventually have to write that debt off as a bad debt. Some companies will set a limit such as $1,500 or $5,000 as the amount of money they will lend without having some type of collateral, which reduces their risk exposure. Even without collateral there are some measures that a credit card company can take if you decide not to repay your debts.

If a credit card company decides to bring legal action against you they can file a lien against your property if they win a judgment against you. When a lien is attached to your property they may not get any money from you right away but if you decide to sell your home or refinance you will probably have to pay that lien off. In certain situations a creditor could have the power to instigate foreclosure on your property in order to get the money to pay off the debt you owe. Now you will probably need to speak with a real estate attorney and check with the laws in your state. As you can imagine something of this nature is going to vary from state to state.

Liens are normally reported on your credit file and they can remain there for seven years after they are paid. They can also cause your credit score to be lowered which causes you to pay more for other credit products you apply for. When liens are filed they can be spotted in two places: your credit report and through the county assessor's office. Liens become public record and anyone checking the court records can see information about a lien, including the date filed and the amount.

During real estate transactions title companies will normally do a title search on a property to see if there are any liens or other things showing up as encumbrances. Sometimes liens can be avoided by contacting a creditor to make some type of arrangements. Creditors will be more willing to settle for a payment which is less than the established payment because of the tough economic situations we are facing.

Source:
http://www.e-loan-expert.com/Bad-Credit-Debt-Consolidation.aspx?K=DDC56814F1F2721E1003652348DEC4654375ED3C8E294C6799C613F1E01BED75592879572E1A5799212AC74B0C54AE474AC50F8613BBC8B2

Source: http://www.bankruptcylawnetwork.com/2007/02/10/can-a-credit-card-or-unsecured-debt-put-a-lien-on-my-house/