Belt Auction

In the state of California can a credit card company who places a lien on a home force you to sell your house?

My mom is the primary owner while I'm the cosigner/owner. A credit card company is about to go to court against my mom. Unfortunately she lost her job and has been unable to find any other employment so she does not have wages to garnish. All she has is a small pension check (approx $124.00) she gets monthly. I'm thinking they may end up placing a lien on our home. Previously I was given the impression a lien just meant they can collect if we sell the house or refinance. Now I'm hearing that they can actually make us sell our home or put it up for auction. If they did, we have no place to go and would be left homeless. It's hard for me to pay on her debts because I have my own I'm paying (I'm trying to avoid wage garnishes) along with all other household bills. I don't want to lose our home due to a credit card company but it sounds we possibly could. I was wondering if anyone knew what the lien laws were for the state of California or had a similar experience they could share.

Public Comments

1. No the credit card is an unsecured loan. Only secured a secured loan that was originally on the home can force a foreclosure.
2. a credit card company cannot make you sell your house. they can put a lien on it but all that means is that when the house eventually gets sold, they will get some money from the sale to offset the debt. BUT.... The primary lien holder is the bank where your mom got her mortgage and the credit card company knows that they have to get their money first. What you are describing is not going to happen. The credit card debt would have to be so large for them to put on lien on the house and if she owned the house outright it would be more likely but in this economy, there is no guarantee there would even be a profit if the house was sold after paying the bank. FYI - If your mom is really only making $124 per month, then she is a prime candidate for bankruptcy as she has no money. She can easily discharge all her credit card debt. She should do it now before she starts to make money again.
3. A residence is a protected asset, but only to the extent allowed by law. Each state defines how much that is. You did not state what the amount of equity is. If it exceeds the exempt amount in a big way, then you may have an issue. If it doesn't, then the creditor will just wait you out and wait for the property to sell. Then they can collect the amount that exceeds the exemption.
4. The credit card company in question could attach a lien to you mom's home if they won a judgment, However as the other poster said, her filing bankruptcy would get that creditor, and all others, off her back ... So, she won't lose the house unless you guys just don't wanna' file bankruptcy ... That said, Kah-lee-phorn-ee-ah has a homestead exemption where, depending on her situation,, she can exempt up to $125,000 of the property, so if the property is worth less than her exemption, they couldn't seize it either, since there's nothing for them ... You may wanna' talk to an attorney ... ..
5. No, they cannot *make you* sell your home. They can put a lien on it, and if you ever did sell, they would be in line after the mortgage gets paid off to get their $$$. The credit card debt was NOT secured by the home, therefore, they cannot make you sell it.