I purchased a whole house water system on 01/24 and financed it through ISPC. On 03/12, ISPC put a lien on our home along with 8 others on the same date. We were never advised they would put a lien on our home and we didn't find out about it until Oct. 2010 when we tried to refinance our VA mortgage loan. We contacted ISPC when we found out because the lien was preventing us from being able to refinance. We asked ISPC why they put a lien on our home without advising us and they claim they could because of the following paragraph;
SECURITY INTEREST - You hereby grant to-ISPC a purchase money security interest
in any Purchases you charge to your account. You agree and acknowledge that ISPC has
and shall continue to have a security interest in said Purchases as long as your account
is open, whether any of said Purchases is a fixture or not, and regardless of the exact
nature of the security interest applicable to any specific Purchase. You promise to sign
all financing statements and to do all other things necessary to perfect and protect our
security interest when we request you to do so, Any fees paid to perfect and/or protect
our security interest are excluded from FINANCE CHARGES. You must inform us if you
move, change your mailing address, or transfer the Purchases subject to our security
interest from your present address.
They refuse to subordonate so we can refinace, and the reason they claim they put the lien was in 2008 too many people were walking away from their homes. When we purchased the water system we went over the whole contract and in the contract we signed, number 5. DEFAULT states if the buyer fails to pay, Seller shall be entitled to take possession of the goods. Nothing about a lien. We have always paid ISPC on time. I wonder how many other people they did this to as our lien and the other 8 were all placed at the same time on 3/12
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