Docketed SCP Judgment/lien foreclosing on a jointly owned New Jersey Home - If I bid

[njforeclosure]

What is the name of your state? New Jersey

Hello,

This is a pretty complex real estate matter for which I'm having
difficulty finding someone who knows the exact laws. I've spoken
with
attorneys but none have been sure of their answers.


To briefly describe the situation, I'm hoping to bid at a sheriff's
sale on an individual's interest in the home. The individual happens
to be a relative who fell into a great deal of debt and has had
numerous judgments against him. One of his debts is forcing a
foreclosure on the home to collect his judgment amount (a relatively
small amount).


Now, there are superior and junior liens on the home aside from the
foreclosing lien. There is a mortgage which is current and all taxes
and whatnot are also current.


Given that, what are the implications of my being the highest bidder
on the home?


(This is what I've gathered, and could very well be wrong about, and
where I'd need expert legal input)


1) At very minimum, my relatives name can be removed from the title
of the house. Any future judgments against obtained in the Law
Division in
New Jersey or any future Special Civil Part judgments that are
docketed with the New
Jersey Superior Court will NOT turn into liens on the house. I won't
be buying something that has potential to be further encumbered,
right?


2) I'm really iffy on this part: the possibility of current liens on
the home dropping off as a result of the foreclosure sale. What I
believe
to be most accurate though, is the following:


a. ALL judgments in the special civil part division which have NOT
been docketed in the superior court can never become liens on the
home
since the home will no longer be in my relative's name.


b. Liens on the home as a result of Judgments entered in the Law
Division or Special Civil Part judgments docketed in the superior
court AFTER
the foreclosing lienholder's judgment's date docketed are ELIMINATED.
(these are the junior liens, right?) The liens on the house only.
The judgment against my relative remain, but
they no longer have a right to a lien on the home.


c. All the liens entered BEFORE the foreclosing lien's date remain
on
the house, but no longer have a right to force the sale of my
relative's
"interest/ownership" in the property since he no longer owns an
interest. They can only collect their money when the house is sold.
But my
ownership in the house is protected and they can't force me to sell,
right?


d. These other lienholders (superior or junior to the foreclosing
one) cannot reverse the sale or do anything after it. Do they need
to
be
served notice about the sale? Does that responsibility fall on the
foreclosing lienholder? If he doesn't, can they come back and make a
claim on the house? Will my interest in the home and the amount I
paid for it at the sale be protected?


The house is currently owned jointly by my two relatives (a husband
and wife). It is the husband's portion that is being auctioned and I
have no problem owning the home jointly with his wife. From what I
understand, after the sale, their joint tenancy would turn into a
tenancy in common between myself and the relative's spouse.


Now, I wasn't sure beforehand when/how a judgment turns into a lien
on
the house. From the research I've done online, in New Jersey,
judgments entered in the Civil Law Division (which handles cases
of $15,000 or more) are automatically turned into liens on real
property
owned by the debtor. Judgments entered in the Special Civil Part
Division (which handles cases of less than $15,000) are ONLY turned
into liens on real property owned by the debtor if the judgment is
subsequently DOCKETED with the New Jerseye Superior Court.
Is this right? This matters since the relative has numerous other
judgments in the SCP division that from what I understand are not
liens on the home.


Am I missing anything? Am I wrong on any of the legal nuances?
Anything you think I should consider/look into? Are there any tax
implications on me getting, I guess, Half (since it's my relative's
interest in the house thats being sold) ownership of the house?
What do I need to do after the sale if I am the highest bidder?


I realize I won't have "clear" title to the house unless all superior
liens/judgments are paid off as well. What are the ramifications of
this? Can they be paid off over time and once completely paid off I
get clear title to the home? What if I decide to sell before I have
clear title? The lien amounts would be deducted from the money I
collect, which is fine, but is there anything else that could come
up?


Thank you! Please forgive me if I'm too verbose, I'm hoping to keep
as much in this post as possible to make it more accessible for
anyone
researching this information as it took me quite a while to gather
everything.


Thanks again.

[FlyingRon]

A foreclosing junior lien does not usually wipe out a senior lien. Usually the first mortgage holder shows up and bids enough to clear their interest.

The foreclosing liens and any junior liens are extinguished. Any attempts to pursue liens against the property will not be enforceable.

Note that tax liens, regardless of when filed, generally have the HIGHEST priority.

[LindaP777]

Originally Posted by njforeclosure

The house is currently owned jointly by my two relatives (a husband and wife). It is the husband's portion that is being auctioned and I
have no problem owning the home jointly with his wife.

How can they auction part of a house???

[nextwife]

I'll take the sunny half!