Question about a Judgement Attached to a Property - Posted by mvm

Posted by Bob Smith on April 24, 2006 at 21:19:19:

Are child support liens assignable? Plus I’ve seen that many of them run in favor of a government agency, not the actual beneficiary.

Question about a Judgement Attached to a Property - Posted by mvm

Posted by mvm on April 24, 2006 at 12:53:30:

Hi All,
I have a question about a judgement attached to a property that I was hoping to get some insight on.

I’m looking at a property that is in pre-foreclosure stage right now.
There’s a judgement attached to this property from divorce/childsupport favoring the wife of the owner.
If the owner lets the property go into foreclosure, what happens to the judgement attached to the property. Does it get wiped out at the sherriff’s sale?
and is the homeowner still liable to pay the judgement even after the sherriff’s sale.
If I successfully bid on this property at the auction, Will i get the property free and clear of all liens.

Thanks in advance for your responses.

Regards,
mvm

Maybe “Make A Deal” time - Posted by John Merchant

Posted by John Merchant on April 25, 2006 at 08:28:32:

You might think about this:

Chances are the W’s lawyer hasn’t been paid, and he/she has some anxiety about this, so would probably urge the W to make a deal with you releasing her interest for a whole lot less than her actual equity as per that “Divorce Lien”.

Although that lien would be eliminated by the completed foreclosure, I’d bet the W and her lawyer are scrambling trying to figure a way to deal with the bank and H and wind up with the house.

And you could be seen as some kind of savior if you show up and want to give the W something for her interest.

A friend of mine buys those “Divorce Liens” and she says it’s fairly uncommon for the H or W, or either of their attorneys to even know it’s a saleable commodity, or a “chose in action” as lawyers would call it…that’s Lorelei Stephens of Wall St Brokers in Seattle (206)448-1168, and she might have some interest in this one and she’d know exactly what it would be worth, in cash, now.

If Lorelei were interested, that would be a source of cash for you now to be able to buy out the house prior to foreclosure.

Re: - Posted by lukeNC

Posted by lukeNC on April 24, 2006 at 17:35:12:

depends on the priority of the judgment. I’m guessing it was recorded after the mortgage. Therefore, the judgment would be wiped off the property should the mortgage go all the way to sale.

Re: Maybe “Make A Deal” time - Posted by Ken-Orlando

Posted by Ken-Orlando on April 26, 2006 at 06:13:50:

Thanks John for that silver bullet

Re: Maybe “Make A Deal” time - Posted by Bob Smith

Posted by Bob Smith on April 25, 2006 at 11:54:17:

The original poster called it a divorce/child support lien. Doesn’t the exact title matter? Are child support liens even assignable?

Re: - Posted by mvm

Posted by mvm on April 24, 2006 at 18:01:13:

Luke,
Thanks for the reply. Yes, the Judgement was recorded after the mortgage.
So is it safe to assume that the judgement will probably be wiped off at the auction? My question is would the husband still be responsible somehow to pay the judgement amount to the wife.

Thanks for your advice.

Regards,
mvm

Judgment play - Posted by Joe Kaiser

Posted by Joe Kaiser on April 24, 2006 at 20:57:30:

It may make sense to go buy or option the judgment from the wife. I
don’t know your numbers, but that’s a play we run with regularity
(especially if it looks like there will be bidding sufficient to pay it off)

Joe

Re: - Posted by lukeNC

Posted by lukeNC on April 24, 2006 at 20:17:08:

the attachment to the property is dissolved when the mortgage forecloses.

the amount owed on the judgment will still be valid until the judgment itself expires.