Judgement - Seizure

I live in the State of North Carolina.

I have a judgement creditor who was awarded a judgement against me. The creditor served a writ of execution to the local sheriff. The sheriff seized my truck. The creditor that was awarded the judgement and served the execution does not have any interest in the vehicle.

The vehicle is secured with a bank loan as first lien holder. There is a second lien on the vehicle for a personal loan. The vehicle has a total of two liens.

Now my question. The sheriff tells me that there will sell the truck at public auction. I understand they have this right. My question is how can they sell the truck without the judgement creditor first paying off the 2 existing liens and obtaining a clear title.

If the truck is sold, and there is not enough to cover the liens who is liable. I know in the case of the bank selling THEIR interest in the vehicle I would be liable to the orignial lien holder for the differance. But what about in this case.

If the truck does not bring enough to pay the two liens, what happens to the truck. I would suppose that if money was available to pay the first lien, the second lien holder would acquire the title and possession of the truck.

Thanks... for your help....

[Ladynred]

Was the judgement creditor one of the lien holders on the truck, or was the judgement from a credit card or other unsecured debt ?

If the truck is sold at auction and does not bring enough money to satisfy both liens, then one or both lienholders can still come after you for the remainder of the debt.

If the judgement creditor was not one of the lienholders on the truck, I don't understand how they could sieze it, especially if there's an outstanding loan against it to another creditor. Maybe one of the Sr. Members can clarify this one.

THANK YOU FOR THE REPLY.. NO THE JUDGEMENT CREDITOR IS NOT A LIEN HOLDER... HE HAS NO INTEREST OR LIEN IN THE VEHICLE.

YES... IT WAS AN UNSECURED DEBT. JUDGEMENT WAS ENTERED. JUDGEMENT WAS AWARDED...

JUDGEMENT CREDITOR'S LAWYER SERVED WRIT OF EXECUTION TO SELL THE TRUCK...

I LIKE YOU DO NOT SEE HOW THE TRUCK CAN BE SOLD BE ANOTHER PARTY NOT HOLDING LIEN ON THE VEHICLE.

THANKS

have you talked to the lein holders concerning this matter? They usually don't take kindly to someone trying to take their collateral. This happened to my mom years ago. Her attorney got involved in it and then the bank that held the loan also got involved in it and took it back from the attorney who had it seized. I don't remember if there was a judgement in that case or not, but they didn't get to sell it and get any money out of it.

[JETX]

This is really easy....

The vehicle has been seized as a result of a writ of execution. The vehicle has two existing liens. Unless the judgment is paid first, the vehicle will be sold at auction. Any proceeds from the sale will go to pay the expense of sale first, sheriff for costs incurred second, and the judgment lien holder third. If there are not enough proceeds to pay the judgment lien holder, then you will have lost the vehicle and still owe the remaining balance of the judgment AND still owe the repayment liens.

In any case, you will still owe the amount to the other two secured lien holders.

I follow what you are saying.. One question tho... If the truck doesn't pay enough off to release the lien.. How can the sale take away the title from the exisitng lien holder?

Surely, the existing lien holder would not lose their collateral held by the lien.

The writ of execution surely cannot sieze property from a lien holder.

thanks...

Ivan Sunn

[JETX]

You said, "The writ of execution surely cannot sieze property from a lien holder." Wrong.

The judgment lien does NOT sieze 'their' property. The car is YOURS. The 'security lien' is just that... a lien that allows the lender to seize the security in the event of breach... and that is the only case that allows them to take ownership. If there is no breach, there is no ownership by the lender.

The security lien is only to secure payment. If you no longer have the security (due to seizure from the judgment), you are still obligated to pay the outstanding debt..... just that the security is no longer 'in play'. Simply, the lienholder loses their security (which is a risk that they assume as part of their 'business').

Let me give you a different example: You owe $5000 on your 'secured' vehicle and it is totaled in an accident. The insurance company gives you $3000 (since that is all the car is worth). You no longer own or posess the 'security'... but you still owe the unpaid debt ($2000.00).

Thanks again for the reply..

I HAVE the train of thought about who is liable for payment to the lien holders.. In this case I realize and know it is and will be me.

My question is?

At sale time, how is the title taken away from the lien holder and the lien holders name erased from the title. Why would the lien holder do this voluntarily? He would not. So what I assume you are saying, but haven't made clear to me as of yet..

That the lien can be dismissed and a new title printed. I cannot image lending organizations in this country allowing that. If this is true, lien rights are really not very solid.

This is the part of the equation, I am struggling with understanding.

Thanks,

Terry

My attorney tells me that in NC if a vehicle which is personal property or real property (real estate) is sold due to a judgement from a judgement creditor. The property whether real or personal is sold subject to lien, and the liens transfered along with the property. Then holders may still elect to sue me, but they still have lien rights transfered with the sale of the property.

The new owner of the property buys at auction subject to lien the property and due to the subject of liens becomes responsible.

Please let me know if this makes sense to you?

IvanSunn... learning the law.

[JETX]

My advice: quit struggling with understanding it. It is a fact of life.
Your choice, pay the judgment and keep the truck (or any other property), or let it go to auction. That is the only real choice you have in the matter.

thanks again for not answering my question. I am not struggling with the idea of who pays what.

The purpose or supposedly purpose of this forum I thought was to inform and learn.

I am trying to learn and educate other people reading these threads as to what happens in cases like these.

You still have not answered if in your opinion of the law, the liens will be passed along with sale of the property.. either real or personal.. again.. wouldn't the sale be conducted with the property being sold subject to lien.. this is the question... Isn't that the law. and if it is .... doesn't that mean that the new owner would assume the previous liens.

[JETX]

Nice post. I really, really like it!!!

I guess your approach is.... if I don't like the news, it MUST be biased against me!! With that attitude, I think we can see why you have a judgment against you. Guess you figured that the plaintiff was 'biased'.


Thank you... and have a happy day!!

[bigun]

JETX has never hidden his area of expertise. Though I've never been to his website, the email address is a pretty good tipoff! Personally, I think he gives very balanced advice. There are numerous post where he has clued someone in about there rights under various consumer acts and suggested a reasonable course of action.

[Ladynred]

Ivansunn,

JETX was not giving you biased opinions, he was telling you like it is. JETX helps a LOT of people, and the fact that his company and his profession is judgement enforcement makes him a great source for information about judgments. He does NOT have anything against you or any of the hundreds of people he has given excellent information to. I have been around these boards for several months now, and I've learned a LOT from JETX, he's very good. I wouldn't want any of MY creditors using him to get me.. , but I would never consider any of his replies to people's posts, people looking for help and information, to be biased because of his business.

In fact, this board NEEDS people like him, with their expertise, to help in these boards, otherwise it would just be poor ill-informed consumers (like me !) swapping opinions and mis-information and getting nowhere. There WAS a guy who posted here for a while who was indeed very nasty to people and HIS profession was a debt collector.. JETXis nowhere near what THAT creep was like.

I might not always like the answers I get to my questions, but I have found that between them, the Sr. Members always get it right and do their best to help people. I too was confused about the situation of yours, but, I have to admit, JETX is right.. you don't have to understand it all to know, in the end, what the bottom line is and what you must do to resolve it.

I don't understand all of what could come at me either (40K judgement waiting to happen), but I know that trying to pay it would put me in the poorhouse or leave me living in my car. I know how it happened, I did do it on purpose, though I didn't *want* to do it, I had little choice at the time. I don't like a lot of things about it, but I know what the bottom line is.

Guess my angle is.. Don't Shoot The Messenger !

[lauras2u]

Why isn't this man concidering bankruptcy? There is 2 liens on his truck so i assume there isn't much other property.

If he oes file bankruptcy, can he keepthe truck?