I have a family member who had a house recently foreclosed on.....?

it was an investment property for her & her renters did her really wrong (long story) & she just went through a bout of cancer & a lengthy hospital stay. She ended up losing the house. She had 2 mortgages on the house & the 2nd mortgage company is contacting her now telling her they are going to put a lien on her primary residence. By law can they legally do that? What would be her best line of defense against this company? Is bankruptcy the only way out? She does not have the money to pay this as she is single & lives paycheck to paycheck. Any other ideas or suggestions? Any advice would be greatly appreciated.

yes they can put a lien on her property. any time money is owed to a creditor, in an attempt at collection they may file to have it attached as a lien on the property. this doesnt mean she is going to lose her house... or even have to pay it for that matter. it just means that in the event of a sale or refinance of that property, all leins against the property have to be paid.

What a mess. I suggest you hire an attorney to help you get thru the maze of legalities.

As a matter of further clarification, the lender for the rental property cannot put a lien on her house from the rental mortgage agreement itself, since her personal residence is not listed as collateral.

The process which will be used to secure such a lien is to file a collection judgment against your family member for the debt, and then use THAT judgment as the legal process and means to obtain a lien on her primary residence.

Bankruptcy does not remove liens from properties.