Quote:
Originally Posted by srandallf
i dont understand your question exactly...but
credit card company can sue you when in default (on the credit card account) and get judgement which is then filed with country clerks office. once judgment is filed, plaintiff can exercise whatever legal remedy they have to get judgement satisfied.... take your house? no. there are secured debts and unsecured debts...big difference. credit cards are unsecured...i.e., no specific collateral secured by a lien..unlike home equity loan or mortgage
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Credit Card company (unsecured creditor) can sue for default and obtain a default judgment. A judgement (unsecured claim) can then be attached to real estate as a lien (secured claim). The lien can be attached to any and all real estate that the creditor can identify that the borrower owns. The lien on the house could then be collected via a foreclosure action, however, the lien holder would have to pay off all prior mortgages or liens at foreclosure to obtain title. So unless there is substantial equity in the house it is possible, but UNLIKELY that this would ever happen. The more likely event is that the lien will just sit there and whenever the house is sold or refinanced a settlement with the Credit Card company will need to be made or your cannot deliver clear title to the mortgage company or the buyer as the case may be.