Can a collection agency put a lein on my home if the debt is over 7 years old?

UPDATED: Aug 16, 2012

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Can a collection agency put a lein on my home if the debt is over 7 years old?

My house had 2 loans set up when I purchased it 9 years ago as part of the selling offer. A first mortgage as a traditional loan and a second mortgage that was converted into a revolving credit account with a bank. I lost the home in foreclosure 7 years ago. The first loan was satisfied in foreclosure in reposessing the property. The second mortgage account is still being pursued by a collection agency who bought it. Can they put a lien on a new home I plan to purchase next year? I have not filed bankrupcy and this is the only negative account on my score.

Asked on August 16, 2012 under Bankruptcy Law, Michigan


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If there is no judgment against you at this time with respect to the second mortgage that was secured by your home that was foreclosed upon and no lawsuit yet filed as a result, most likely any claim for moneys owed would be barred by your state's statute of limitations on the subject for breach of a written contract. Given such, there would be no basis for a judgment lien to arise. To be sure, I suggest that you consult with an attorney that practices in the area of real estate law.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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