This week we discussed the case of Dominick Vulpis, a Middletown, New Jersey man who found out that his home was in foreclosure after he failed to pay a $140 sewage bill. Vulpis’story is important because it shows the impact that a lien can have on an individual’s property.
Vulpis had a lien placed on his home by the city, which eventually sold it to a private investor. While it is rare that a home would go into foreclosure following a lien sale, actual sales of liens are becoming increasingly common as investors try to turn profits. According to a recent CNN article, “many states allow investors to charge rates of 18 percent or more on the outstanding debts. And, in some cases, as much as 20 percent to 50 percent.”
A lien secures a debt through property should a debt not be paid. This can be done through repossession or foreclosure. While Vulpis was able to keep his home with the help of an attorney, some people facing foreclosures with liens on their properties may not have the same luck.
We discussed on Wednesday how bankruptcy can help families who are facing foreclosure through automatic stays. An experienced bankruptcy attorney can work with you if you are thinking about filing for Chapter 7 or Chapter 13 bankruptcy and you have liens on your property. Some liens are negotiable through payment or through the surrendering of property, a process that can be delayed through bankruptcy. There are also ways to eliminate liens on your property, if you are able to meet certain equity requirements.
Liens can be a very complex issue when you’re facing foreclosure and thinking about bankruptcy. Talk to an experienced attorney who can determine which form of bankruptcy would work best for you. The worst thing you can do is not take action, unless you want a bank to take control of your home.
If you have questions regarding a foreclosure case or would like to avoid a potential foreclosure, talk to our attorney about what bankruptcy can do for you. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd
