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Posted by Tony on February 12, 2003 at 09:48:26:
In Reply to: Understanding judgements posted by Jom on February 12, 2003 at 03:14:12:
A judgment brought by an individual or a business against the homeowner and won can be then levied against any assets that the person has, typically it is filed against his home. They can also go after their checking and saving accounts or any other asset they may have. It is not done automatically by the court, it is something that the creditors attorney will do after they win the judgment. Almost always the judgment is granted because the homeowner fails to show up for court.
Now if a 1st mortgage forecloses, the odds are pretty good that the sale price will be for the amount due to the lender. If bidding goes higher than that amount, then whatever funds are left are dispersed to the lien holders after the 1st, in the priority they recorded. So, if there was a second mortgage, and a judgment recorded (in that order) after the 1st mortgage, and there is a bid of $5,000.00 above the 1st mortgage holders opening bid, the $5,000.00 is first paid to the 2nd Mortgage holder, if there is any left, it goes to the judgment holder. That a big IF.
If after the sale there is no Additional funds for the judgment holder, it is wiped away, and they have to pursue other options to collect the debt.
Hope that helps clear things up
Tony
www.stopforeclosureinfo.com
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