Company placing a mortgage on my house?

Hey everyone! So, I’m a lawyer by trade, but honestly, I’m a bit out of my element here. I can read the statutes all day, but there’s a massive difference between what’s written in the books and how things actually play out in the real world.
Here’s the deal: back in the 80s when my family was building our house, my dad was working over at the refinery in St. Louis. I think he managed to snag a loan from General Electric, which was doing business over in Canada back then. I was looking into it recently, and it looks like that company has really beefed up its operations in Canada lately. My brother—who definitely doesn't have a law degree—did some math on the debt listed on the title, and with interest, he thinks we're looking at roughly $7,500. Now I'm wondering, if I were to put the house on the market:

1. Is it even normal for buyers to want a house with a lien like this attached to it? I assume most buyers are smart enough to run things by their own attorney, so I'm curious about how people usually handle these kinds of encumbrances during a sale.

2. Does the interest actually apply to the specific amount listed on the property deed extract? And if it does, what's the best way to calculate the total?

3. If I need to file a petition to clear this lien from the property, I know it involves some kind of non-adversarial legal proceeding. What do you guys think the odds are of a successful outcome? Like, give it to me in percentages. If I hire a killer lawyer, can I get everything wiped from the records? Also, is there any chance for a settlement where I could, say, pay off half the amount, or am I stuck paying every single cent?

Thanks so much for the help!

Steven Stewart3 said:Hey everyone! So, I’m a lawyer by trade, but honestly, I’m a bit out of my element here. I can read the statutes all day, but there’s a massive difference between what’s written in the books and how things actually play out in the real world.
Here’s the deal: back in the 80s when my family was building our house, my dad was working over at the refinery in St. Louis. I think he managed to snag a loan from General Electric, which was doing business over in Canada back then. I was looking into it recently, and it looks like that company has really beefed up its operations in Canada lately. My brother—who definitely doesn't have a law degree—did some math on the debt listed on the title, and with interest, he thinks we're looking at roughly $7,500. Now I'm wondering, if I were to put the house on the market:

1. Is it even normal for buyers to want a house with a lien like this attached to it? I assume most buyers are smart enough to run things by their own attorney, so I'm curious about how people usually handle these kinds of encumbrances during a sale.

2. Does the interest actually apply to the specific amount listed on the property deed extract? And if it does, what's the best way to calculate the total?

3. If I need to file a petition to clear this lien from the property, I know it involves some kind of non-adversarial legal proceeding. What do you guys think the odds are of a successful outcome? Like, give it to me in percentages. If I hire a killer lawyer, can I get everything wiped from the records? Also, is there any chance for a settlement where I could, say, pay off half the amount, or am I stuck paying every single cent?

Thanks so much for the help!

1. In practice, most buyers are going to insist on a property that is completely clear of any liens or encumbrances.
2. Yes, they do; interest starts accruing from the date the lien was originally recorded.
3. You don't necessarily need an attorney to negotiate with the creditor. A settlement is always an option, depending on how reasonable the creditor decides to be.
Removing the lien isn't possible until the debt is fully satisfied.
Trying to start a legal proceeding just to clear a lien is basically throwing money down the drain... I mean, on what grounds would a court even grant the removal of a lien?

Honestly, it might be better to just hold onto the house. If that loan was taken out way back in '84, once you factor in all the interest, the debt could easily end up being worth more than the actual property itself.
1. Can you please tell me—is it actually possible for them to start forced collection proceedings?
I’m asking because, honestly, that company from Canada barely even existed a little while ago, and then suddenly I look it up and they're apparently doing fantastic business.

I don't see why anyone would bother with a settlement when the situation is so black and white. I know exactly what it means to have a claim recorded in the public land registry. Maybe there's some shady business going on regarding the legal succession of the company.

2. Here's another thing: if, say, someone took out a $1,000 loan from General Electric back in 1984, how do they even calculate those interest rates now? It seems logical to me that the interest rate should be explicitly noted in the public record.
3. Everything is listed in dollars, so how do they determine what that debt was worth in terms of purchasing power back then? Like, if it says $80,000, how am I supposed to figure out what that amount actually represented in today's money?

It looks like I might lose my house over some trivial nonsense, and man, it's been 35 years! If $3.25 that were the case, we're talking about a massive amount of money. My mom has an apartment in her name, plus those vacation rentals by the coast... they could take all of it... oh my god.

Steven Stewart3 said:Honestly, it might be better to just hold onto the house. If that loan was taken out way back in '84, once you factor in all the interest, the debt could easily end up being worth more than the actual property itself.
1. Can you please tell me—is it actually possible for them to start forced collection proceedings?
I’m asking because, honestly, that company from Canada barely even existed a little while ago, and then suddenly I look it up and they're apparently doing fantastic business.

I don't see why anyone would bother with a settlement when the situation is so black and white. I know exactly what it means to have a claim recorded in the public land registry. Maybe there's some shady business going on regarding the legal succession of the company.

2. Here's another thing: if, say, someone took out a $1,000 loan from General Electric back in 1984, how do they even calculate those interest rates now? It seems logical to me that the interest rate should be explicitly noted in the public record.
3. Everything is listed in dollars, so how do they determine what that debt was worth in terms of purchasing power back then? Like, if it says $80,000, how am I supposed to figure out what that amount actually represented in today's money?

It looks like I might lose my house over some trivial nonsense, and man, it's been 35 years! If $3.25 that were the case, we're talking about a massive amount of money. My mom has an apartment in her name, plus those vacation rentals by the coast... they could take all of it... oh my god.

There are exchange rate tables available; there are even ones dating back to the Austro-Canadian era.

http://www.kunalipa.com/katalog/teca...-1966-1991.php

http://www.kunalipa.com/katalog/teca...-1913-1945.php

There is a 1:100 denomination. If my math is right, looking at 1980, the table shows $1 equals 29 units, but you have to multiply that by 100.
That makes $1 = 2,900 units.
Your best bet is to verify all of this directly with the bank.

In your specific case, 80,000 units / 2,900 = roughly
$27.5.

I remember when a loan taken in '80 was still being paid in the early '90s—the principal was worth about as much as a matchbox.

Just keep in mind that interest rates in the '90s were sky-high, and they were calculated according to the law—compounding interest on top of the interest.

Once enough time has passed for a debt to become stale, the creditor is basically only entitled to collect the principal amount. They can't come after you for interest, legal fees, or any other extra charges, so you really only owe whatever specific amount was originally recorded in the lien.

If you're looking to sell your property, the creditor can actually provide a letter of intent that outlines the exact amount they’re looking for. In those scenarios, the buyer pays that specified amount directly to them first to secure a release of the lien—essentially giving them a clear title—and then they pay the remaining balance to you.
It's honestly not a big deal, nor is it complicated at all.
A ton of people sell homes with existing mortgages using this exact method.

Besides, creditors are usually pretty willing to cut a deal. At the end of the day, getting cash in hand right now is much better than dragging things out through the court system or dealing with the whole circus of a forced sale.

But here’s the most important part for you: if that lien has been sitting there since back in '84, you're only on the hook for the amount listed in that original record.

hollowmason64 said:Once enough time has passed for a debt to become stale, the creditor is basically only entitled to collect the principal amount. They can't come after you for interest, legal fees, or any other extra charges, so you really only owe whatever specific amount was originally recorded in the lien.

If you're looking to sell your property, the creditor can actually provide a letter of intent that outlines the exact amount they’re looking for. In those scenarios, the buyer pays that specified amount directly to them first to secure a release of the lien—essentially giving them a clear title—and then they pay the remaining balance to you.
It's honestly not a big deal, nor is it complicated at all.
A ton of people sell homes with existing mortgages using this exact method.

Besides, creditors are usually pretty willing to cut a deal. At the end of the day, getting cash in hand right now is much better than dragging things out through the court system or dealing with the whole circus of a forced sale.

But here’s the most important part for you: if that lien has been sitting there since back in '84, you're only on the hook for the amount listed in that original record.

This seems like the most logical route to me—just let part of it hit the statute of limitations if they aren't actively demanding payment.Does anyone happen to know the actual statute of limitations for interest on debts listed in public land records?I'm not even 100% sure if the loan was originally taken out in '84.
I wouldn't even bother telling them I'm selling the place, since I'm not even selling it yet—better to keep it under wraps.🤦
Wait, hold on, does that last sentence mean any potential claims for interest have already expired? Please, please let someone know!

Which specific law actually governs how the statute of limitations works for interest on monetary claims recorded in public registries?
There's got to be a rule for this; it can't just be some vague courtroom interpretation or something unwritten.

Are you absolutely positive you guys didn't pay those back? I mean, honestly, there's probably like 99% of those old loans people carry around where the debt on their properties was settled ages ago, but folks just... they just never bother going down to the county recorder's office to file the paperwork to clear the title.

hollowmason64 said:Once enough time has passed for a debt to become stale, the creditor is basically only entitled to collect the principal amount. They can't come after you for interest, legal fees, or any other extra charges, so you really only owe whatever specific amount was originally recorded in the lien.

If you're looking to sell your property, the creditor can actually provide a letter of intent that outlines the exact amount they’re looking for. In those scenarios, the buyer pays that specified amount directly to them first to secure a release of the lien—essentially giving them a clear title—and then they pay the remaining balance to you.
It's honestly not a big deal, nor is it complicated at all.
A ton of people sell homes with existing mortgages using this exact method.

Besides, creditors are usually pretty willing to cut a deal. At the end of the day, getting cash in hand right now is much better than dragging things out through the court system or dealing with the whole circus of a forced sale.

But here’s the most important part for you: if that lien has been sitting there since back in '84, you're only on the hook for the amount listed in that original record.

So, how much time are we actually talking about when it comes to that statute of limitations?

Carl Wilson said:Are you absolutely positive you guys didn't pay those back? I mean, honestly, there's probably like 99% of those old loans people carry around where the debt on their properties was settled ages ago, but folks just... they just never bother going down to the county recorder's office to file the paperwork to clear the title.

You're spot on on that one.

Rachel Diaz8 said:So, how much time are we actually talking about when it comes to that statute of limitations?

I'm pretty sure the FEC handles all those regulations.

Carl Wilson said:Are you absolutely positive you guys didn't pay those back? I mean, honestly, there's probably like 99% of those old loans people carry around where the debt on their properties was settled ages ago, but folks just... they just never bother going down to the county recorder's office to file the paperwork to clear the title.

Nope, we definitely haven't paid them back.

That’s just super weird, honestly, but whatever. We really need to double-check if that company on the paperwork is actually the same entity operating today

Steven Stewart3 said:I'm pretty sure the FEC handles all those regulations.

Look, I get it—I’m just genuinely curious where all this misinformation is even coming from.

Rachel Diaz8 said:Look, I get it—I’m just genuinely curious where all this misinformation is even coming from.

Look, if the San Diego Zoo legal docs say that claims regarding interest on receivables from a sales contract or whatever expire after a certain timeframe, they list a bunch of other scenarios too—but there’s absolutely nothing in there about what I’m asking about, which is those specific claims registered in the public records. So, why couldn't that be wiped out as well? I mean, seriously, interest amounts can't just keep growing forever!🙄

Steven Stewart3 said:Look, if the San Diego Zoo legal docs say that claims regarding interest on receivables from a sales contract or whatever expire after a certain timeframe, they list a bunch of other scenarios too—but there’s absolutely nothing in there about what I’m asking about, which is those specific claims registered in the public records. So, why couldn't that be wiped out as well? I mean, seriously, interest amounts can't just keep growing forever!🙄

Which specific section are you referring to?

Go ahead and ask anyone currently facing bankruptcy how it feels... those people whose interest payments have effectively swallowed their principal whole.

Man, if you look into the San Diego Zoo, there are actually statute of limitations on interest, but I haven't quite tracked down the specific details I'm hunting for. But hey, no biggie—I’ve got connections... though looking at this thread, it seems like you can get help here... not! I bet they just want you to pay them a fee first.

As for the other thing, people who get their accounts frozen because banks or similar outfits kick off an attachment proceedingwithin the required timeframe are basically screwed, unless they hire a Lawyer or some high-end firm that actually knows what they're doing.

These guys over at General Electric are acting pretty clueless, honestly. I was browsing online and saw all this stuff about foreign companies buying up their debts, and now they're losing money on claims because of those wars in Zaire or Libya. It's a total mess.

Steven Stewart3 said:Man, if you look into the San Diego Zoo, there are actually statute of limitations on interest, but I haven't quite tracked down the specific details I'm hunting for. But hey, no biggie—I’ve got connections... though looking at this thread, it seems like you can get help here... not! I bet they just want you to pay them a fee first.

As for the other thing, people who get their accounts frozen because banks or similar outfits kick off an attachment proceedingwithin the required timeframe are basically screwed, unless they hire a Lawyer or some high-end firm that actually knows what they're doing.

These guys over at General Electric are acting pretty clueless, honestly. I was browsing online and saw all this stuff about foreign companies buying up their debts, and now they're losing money on claims because of those wars in Zaire or Libya. It's a total mess.

So, basically, someone owes money for years, they never touch the principal, and eventually, the interest just expires under the statute of limitations.
That's pretty interesting.🙂

Maybe just wait for one of the upcoming updates to the Real Estate Law and try to file for amortization?

Here’s how the law stands right now:
Article 162.
(1) An owner of property burdened by a mortgage—or even any co-owner or joint owner—can petition the county recorder's office to start proceedings to amortize and clear the mortgage debt:
– if at least 30 years have passed since the mortgage was recorded, or if there are subsequent filings related to it, then from the date of the last such filing
– if it’s impossible to track down the authorized parties or their legal successors, and
– if during this entire period, neither the principal nor interest has been requested or received, and no other rights related to the debt were exercised.
(2) This article doesn't apply to mortgages recorded before September 1, 1980. Those specific mortgages will be cleared automatically by the state or upon a party's request.

Up until recently, the cutoff date was December 25, 1958.

Rachel Diaz8 said:So, basically, someone owes money for years, they never touch the principal, and eventually, the interest just expires under the statute of limitations.
That's pretty interesting.🙂

You gotta consider that the creditor didn't lift a finger to collect what they're owed (even though they had plenty of ways to do it), which pretty much proves they aren't actually interested in getting paid.

Carl Wilson said:Maybe just wait for one of the upcoming updates to the Real Estate Law and try to file for amortization?

Here’s how the law stands right now:
Article 162.
(1) An owner of property burdened by a mortgage—or even any co-owner or joint owner—can petition the county recorder's office to start proceedings to amortize and clear the mortgage debt:
– if at least 30 years have passed since the mortgage was recorded, or if there are subsequent filings related to it, then from the date of the last such filing
– if it’s impossible to track down the authorized parties or their legal successors, and
– if during this entire period, neither the principal nor interest has been requested or received, and no other rights related to the debt were exercised.
(2) This article doesn't apply to mortgages recorded before September 1, 1980. Those specific mortgages will be cleared automatically by the state or upon a party's request.

Up until recently, the cutoff date was December 25, 1958.

You gotta consider that the creditor didn't lift a finger to collect what they're owed (even though they had plenty of ways to do it), which pretty much proves they aren't actually interested in getting paid.

Honestly, if there’s already a lien recorded, you don't even need to take any action.
The interest alone is going to be massive.

Carl Wilson said:Maybe just wait for one of the upcoming updates to the Real Estate Law and try to file for amortization?

Here’s how the law stands right now:
Article 162.
(1) An owner of property burdened by a mortgage—or even any co-owner or joint owner—can petition the county recorder's office to start proceedings to amortize and clear the mortgage debt:
– if at least 30 years have passed since the mortgage was recorded, or if there are subsequent filings related to it, then from the date of the last such filing
– if it’s impossible to track down the authorized parties or their legal successors, and
– if during this entire period, neither the principal nor interest has been requested or received, and no other rights related to the debt were exercised.
(2) This article doesn't apply to mortgages recorded before September 1, 1980. Those specific mortgages will be cleared automatically by the state or upon a party's request.

Up until recently, the cutoff date was December 25, 1958.

You gotta consider that the creditor didn't lift a finger to collect what they're owed (even though they had plenty of ways to do it), which pretty much proves they aren't actually interested in getting paid.

¸
If my place was built back in '84, there's no doubt in my mind that the mortgage was taken out sometime after 1980. Honestly, though, I don't really care about the timeline—my main concern is making sure they aren't throwing interest into the mix. That’s the part everyone seems to be dodging, but it's the only thing that actually matters to me! Man, let me tell you, I am absolutely done talking about interest rates! Seriously, if I hear one more person drone on about basis points or what the Fed might do next, I’m going to lose my mind. It feels like every single conversation lately eventually circles back to those numbers, and honestly? It’s just exhausting. I’d much rather talk about anything else—literally anything! Let's move on to something actually fun for once!Honestly, I’m thinking about just sitting tight and waiting until the new Land Title Act kicks in—maybe then my principal might actually get wiped off the books! If I remember correctly, that loan was taken out back in '81 or '82, so there's no rush, right? I figure I can just hang out and wait for that 30-year mark to pass. No harm in being patient!