In either case, I will have to discontinue making my loan payments of $2,000. Since receiving my cancer diagnosis six months ago, I have been without a job and have been paying for my medical expenses out of pocket until I was able to acquire Medicaid. My house, which I share with my partner, is the only asset registered in my name.
I hate having to stop paying it because I know it would damage my credit for such a minor sum, but I just can’t afford to continue paying it on top of other essentials. All of our savings are gone.
A lien on my house is my biggest concern. Though I’m not sure whether I’ll even be sued for more than $2,000, it’s a concern that nags at me.
Give the creditor a call, explain the circumstances, and find out what they will agree to.
They are willing to place a lien on your house if they are willing to sue you. assuming that in your state they can.
What could make a lien so harmful? If and when you sell your home, you’ll get your money back. Not a huge deal, I wouldn’t assume.
A mortgage may be voided by a lien.
That’s not all that much in the grand scheme of things.
I would get in touch with the lender to see if anything could be arranged.
I once needed an extra two days to pay off my Apple Card, so they gave me an interest-free month in exchange for nothing.
You have to ask to find out.
Which is the collection agency? Some people sue more frequently than others.
2k might be just enough for them to file a lawsuit.
I sincerely apologize for your ordeal.
Was your house used as security for the loan, or was it unrelated to it? If not, it probably wouldn’t be a legitimate lien even if they attempted, although it would depend on your state.
There are a number of judgment exemptions in most states. A homestead exemption could shield all of your equity from creditors’ claims, or just a portion of them in some states.