Judgement: the Consequences of a Judgment on Top of a Mortgage

[Homeowner in pA]

What is the name of your state (only U.S. law)?

 

[nextwife]

The consequences for whom?

 

[Homeowner in pA]

I think the content of this posting was missing...

Situation: A company is attempting to get a judgment on me and my home from a debt incurred by the previous co-owner. The previous co-owner sold me their share for a $1.00. Since the transfer I acquired a home equity loan, which is now more than the actual value of the property.

Question: If a judgment is levied, what next actions can the collecting company take?

What other information can I provide to help?

 

[OHRoadwarrior]

The Pennsylvania Uniform Fraudulent Transfers Act, (PUFTA) 12 Pa.C.S.A. § 5101 et seq., grants a legal remedy to creditors when a debtor has acted to hinder creditors. Likely, you will discover the court can void the sale and you will potentially be charged with fraud, if you don't pay back the lender.

 

[latigo]

Situation: A company is attempting to get a judgment on me and my home from a debt incurred by the previous co-owner. The previous co-owner sold me their share for a $1.00. Since the transfer I acquired a home equity loan, which is now more than the actual value of the property.

Question: If a judgment is levied, what next actions can the collecting company take?

What other information can I provide to help?

Any judgment lien would be inferior to then existing recorded liens and encumbrances.

Meaning a judgment creditor wishing to levy execution judgment against the property would have to first satisfy those liens that are pre-existing.

Not likely to happen. More likely such a judgment creditor would sit and wait until you attempt to sell.

(Hopefully you don’t have question regarding the first two pointless sentences of your post.)

 

[Homeowner in pA]

Is there a time limit (years?) to which the judgement would void itself?

Any judgment lien would be inferior to then existing recorded liens and encumbrances.

Meaning a judgment creditor wishing to levy execution judgment against the property would have to first satisfy those liens that are pre-existing.

Not likely to happen. More likely such a judgment creditor would sit and wait until you attempt to sell.

(Hopefully you don’t have question regarding the first two pointless sentences of your post.)

 

[nextwife]

Is there a time limit (years?) to which the judgement would void itself?

Was the lawsuit already filed when you took legal possession?

 

[Homeowner in pA]

Titled to both myself and the prior co-owner. The co-owner had become disabled and no longer able to work... I had been paying all the expenses for the previous 18 months before the sell of $1.00 (quick-claim); Although I did pay the appropriate transfer taxes. The creditor did obtain a judgment on my co-owner but it was after the $1.00 transfer. The argument is that I fraudulently purchased the property. As far as the value at time of transfer... It depends. I'm sure you know appraisals are subjective and the county had done a recent re-assessment; Therefore I have “values” that range from $130k to $190k.

Original judgment filed 06/09, transfer 01/10, judgment entered 03/10.

 

[nextwife]

Was the legal action that resulted in the judgment commenced before they conveyed title? NOT the date of the judgment at the end of the legal action.

Was the action disclosed when you put the mortgage in place - what did you state on the Owner's Affidavit signed at closing of the loan?

 

[Homeowner in pA]

Was the legal action that resulted in the judgment commenced before they conveyed title? NOT the date of the judgment at the end of the legal action.

Filed/commenced before the quick-claim deed to me. Judgment entered after.

Was the action disclosed when you put the mortgage in place - what did you state on the Owner's Affidavit signed at closing of the loan?

My recent loan/mortgage? I acquired the loan before the judgment was recorded. I only became aware of this situation after. Although the creditor claims “I” performed a fraudulent act! ???

I understand folks transfer property thinking they can avoid a judgment in cases such as bankruptcy… But that would be on my previous co-owner. Not so black and white!

 

[OHRoadwarrior]

I would interpret this to mean they are entitled to the money you received by taking a loan after the fraudulent transfer. Once it becomes a monetary issue, I would guess ALL of your assets can be potentially attached to recoup the money owed.

§ 5107. Remedies of creditors.
(a) Available remedies.--In an action for relief against a
transfer or obligation under this chapter, a creditor, subject
to the limitations in sections 5108 (relating to defenses,
liability and protection of transferee) and 5109 (relating to
extinguishment of cause of action), may obtain:
(1) Avoidance of the transfer or obligation to the
extent necessary to satisfy the creditor's claim.
(2) An attachment or other provisional remedy against
the asset transferred or other property of the transferee in
accordance with the procedure prescribed by applicable law.
(3) Subject to applicable principles of equity and in
accordance with applicable rules of civil procedure:
(i) an injunction against further disposition by the
debtor or a transferee, or both, of the asset transferred
or of other property;
(ii) appointment of a receiver to take charge of the
asset transferred or of other property of the transferee;
or
(iii) any other relief the circumstances may
require.
(b) Execution.--If a creditor has obtained a judgment on a
claim against the debtor, the creditor, if the court so orders,
subject to the limitations of sections 5108 and 5109, may levy
execution on the asset transferred or its proceeds.

 

[LdiJ]

I would interpret this to mean they are entitled to the money you received by taking a loan after the fraudulent transfer. Once it becomes a monetary issue, I would guess ALL of your assets can be potentially attached to recoup the money owed.

That does not apply at this time. That statute could be used by the creditor in their case to try to prove a fraudulent transfer of the assets and to make the asset available to the creditor, but nobody is entitled to anything until a judge rules that they are.

While this one certainly does seem to have a bit of an odor about it but we do not have nearly enough information to make a determination that it was actually fraudulent.

 

[OHRoadwarrior]

That does not apply at this time. That statute could be used by the creditor in their case to try to prove a fraudulent transfer of the assets and to make the asset available to the creditor, but nobody is entitled to anything until a judge rules that they are.

While this one certainly does seem to have a bit of an odor about it but we do not have nearly enough information to make a determination that it was actually fraudulent.

OP asked what the consequences could be. That is apparently what the consequences "could be". I am not a judge. I am also not the person who engaged actively in a conspiracy to defraud a company of money they were legally entitled to. He is a player, that is the game. No one here can referee.

 

[LdiJ]

OP asked what the consequences could be. That is apparently what the consequences "could be". I am not a judge. I am also not the person who engaged actively in a conspiracy to defraud a company of money they were legally entitled to. He is a player, that is the game. No one here can referee.

That however is not what you said:

I would interpret this to mean they are entitled to the money you received

Had you said instead "

I would interpret this to mean that the could be entitled to the money you recieved

I would not have needed to comment.

 

[OHRoadwarrior]

That however is not what you said:

Had you said instead "

I would not have needed to comment.

What I said was in reference to this section of the reg. You say Poootaaawwwtoooo. I will say Pooootaaatooo. Have a good afternoon.

(b) Execution.--If a creditor has obtained a judgment on a
claim against the debtor, the creditor, if the court so orders,
subject to the limitations of sections 5108 and 5109, may levy
execution on the asset transferred or its proceeds.