Expert: Terry Leeders - 4/30/2008

Question
Our bankruptcy case was closed in April 3rd, 2002.  In it we had our home mortgage that we surrendered.  We are in the process of buying a new home.  During this process we were made aware that there was a lien by GMAC under my name, Teresa Jeffers for $9,491.52.  At the time the Mortgage consultant that we were working with for our new loan consultant (whom works for GMAC) told us that it wouldn't be a problem that we could get the loan under my husbands name.  Now it is a week and a half before closing and this is all becoming a big problem and might be a deal breaker.  Today my husband talked to someone in the Court house and found out that the Lien is for the home we filed on.  It is for the difference in  what we owed and what they sold it at and for lawyer fees.  How can this be?  We were never notified of this and were blown away that they could after the fact file a lien against us for this?  The only paper work we have from our bankruptcy are the "Order closing no asset" paper, and the "Discharge of Debtor" paper.
Is it possible that we will loose this house we have dreamed of and cleared up our credit for.
We live in Illinois.
We purchased a new car 2 years ago and they ran a credit report on us and this lien did not show up them.
What can we do to get this matter cleared up quickly.
We have tried to contact our lawyer that handled the case but his voice mail is full so we have sent an e-mail.  We are going tomorrow to get papers at the court house.

Answer
If you had a judgment against you, and they filed a lien against the home, the lien will stay on, even if the debt is discharged thru bankruptcy.  It may be possible, depending on the figures, to 'avoid' the lien, and strip it off the home.  If you surrendered the home, the lien would be resolved or dismissed thru the foreclosure process, (Creditor's problem, not yours) and the property will be transferred back to the lender or to the new purchaser free and clear of liens.
If this lien was included in your bankruptcy, then it may be that since you are using the same company now, that they are unwilling to work with you because you discharged them in your case.  Talk with your real estate attorney to help clear this up, you may just need to get a new lender.