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01-06-2008, 02:00 PM
| | Junior Member | | Join Date: Jan 2008
Posts: 1
| |  Joint Tenancy / Judgement Lien *Mass*
Massachusetts
In November 2006 I purchased a house with my mother in a joint tenancy. Since then my mother lost a civil lawsuit, the defendant was awarded $30,000 in legal fees, and has attached a judgement lien to the house for this amount. I can no longer afford the mortgage payment (my mother agreed to pay half the monthly payment when we purchased the house, but has yet to contribute a payment); all payments have been paid on time by me. The amount owed on the mortgage is roughly equivalent to it's market value (not accounting for realtor's fees and closing costs).
What recourse do I have to get out of this situation? Am I able to sell at all with this judgement? Will there be a clear title? If I can sell, and there is any profit left after paying the mortgage amount owed, does 100% of profit go toward the judgement, or only 50% (with the joint tenancy)? Is foreclosure or a short sale my only way out? (Neither I nor my mother have the money to pay the judgement.)
Any advice would have my utmost appreciation. Thank you!What is the name of your state?  |
01-06-2008, 02:21 PM
| | Senior Member | | Join Date: Jan 2003
Posts: 17,303
| | Quote:
Originally Posted by MassHomeowner  Massachusetts
In November 2006 I purchased a house with my mother in a joint tenancy. Since then my mother lost a civil lawsuit, the defendant was awarded $30,000 in legal fees, and has attached a judgement lien to the house for this amount. I can no longer afford the mortgage payment (my mother agreed to pay half the monthly payment when we purchased the house, but has yet to contribute a payment); all payments have been paid on time by me. The amount owed on the mortgage is roughly equivalent to it's market value (not accounting for realtor's fees and closing costs).
What recourse do I have to get out of this situation? Am I able to sell at all with this judgement? Will there be a clear title? If I can sell, and there is any profit left after paying the mortgage amount owed, does 100% of profit go toward the judgement, or only 50% (with the joint tenancy)? Is foreclosure or a short sale my only way out? (Neither I nor my mother have the money to pay the judgement.)
Any advice would have my utmost appreciation. Thank you!What is the name of your state? | THe lien MUST be paid off out of any sale.
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01-11-2008, 06:18 PM
| | Junior Member | | Join Date: Jul 2007
Posts: 2
| | | Nextwife are you saying that the lien overrides the mortgage on the property?
what happens if they just walk away, will the bank not get their money, or will the bank have to pay off the lien before selling the property. |
01-11-2008, 06:50 PM
| | Senior Member | | Join Date: Aug 2005 Location: St. Odo of Cluny Parish
Posts: 27,470
| | Quote:
Originally Posted by reese1 Nextwife are you saying that the lien overrides the mortgage on the property?
what happens if they just walk away, will the bank not get their money, or will the bank have to pay off the lien before selling the property. | If the mortgage forecloses on the real estate, the GENERAL rule is that any junior (i.e., newer) liens will be wiped out in the foreclosure.
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01-11-2008, 06:55 PM
| | Junior Member | | Join Date: Dec 2007
Posts: 13
| | | yes i also would like to understand this as well.As my family has a similar situation, but we are lucky enough that we can sell our home for what we owe on it , but there a some credit card liens(that we have been fighting but have gotten no where on thanks to corrupt courts)
Why would the bank be penalized and not able to get their payment in full because of a few crummy collection agents judgements, if we are not allowed/able to sell home, because we do not have enough left over to pay judgement lien, the bank(1st mortgage) will have to foreclose and lose alot of money that it shouldnt have to.
Last edited by burtsbee; 01-11-2008 at 10:46 PM.
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01-12-2008, 04:01 PM
| | Member | | Join Date: Feb 2005 Location: Elgin, IL USA
Posts: 933
| | | burtsbe, I think you misunderstand. If "you" sell the property, any liens have to be satisfied from the proceeds. If the 1st lienholder forcloses on the property and does not get enough from its sale to cover junior liens, those junior liens may no longer apply to the property.
But that does NOT necessarily mean that any judgements against "you" just go away. So even if the bank forecloses, "your" credit card judgements will follow you. |
01-12-2008, 08:25 PM
| | Junior Member | | Join Date: Dec 2007
Posts: 13
| | | i must be confusing everyone.
MY question simply is, what if there are NOT enough funds to cover the liens but the sale would cover the mortgage balance ??
Does that mean i cant sell the house to pay the bank, but i can stop paying the mortgage (which has never missed a payment) and let them foreclose to get their money ?????
Doesnt seem fair to the bank, imo and i do understand if CC judgements follow, that would seem fair as well
Last edited by burtsbee; 01-12-2008 at 08:29 PM.
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01-13-2008, 09:23 AM
| | Senior Member | | Join Date: Oct 2005 Location: Ohio (southwest)
Posts: 2,250
| | Quote:
Originally Posted by burtsbee MY question simply is, what if there are NOT enough funds to cover the liens but the sale would cover the mortgage balance ?? | Asked and answered.
You can not sell the house for less than the recorded mortgages and liens that are against it, unless you bring money to the closing table with you. | |
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