If i have a civil judgement against me and my only asset is my h ome which is in foreclosure, can the person w
Question:
Answer:
This is secured debt, so the mortgage company would be the first person to get proceeds from your home, regardless of any judgement.
Adam is correct...
Good answer ADAM!
your First mortgage isn't called First for nothing.they take precedence over all other debts...even your second.but the civil judgement can come after your income (pay)
good luck
They wouldn't just get rewarded with your home. What they would have to do is try and get the judgment recorded as a lien against your property, and then try to force the property into foreclosure to pay off the lien.
Getting the lien recorded would probably be a pretty easy process for them, but it would depend on all of the other circumstances if it makes sense to try to foreclose or not.
Unless you have a decent amount of equity in the property, if the owners of the judgment foreclosed, they might not get anything from the sheriff sale. This is because any back taxes are paid first, followed by the first mortgage, and then any other mortgages or liens. The liens are paid off in the order that the were recorded. So if you have a mortgage on the property, any proceeds from the foreclosure sale will go to paying off that first.
Usually, because properties sell at sheriff sale for far less than their market value, there is not even enough to pay off the mortgage. So the judgment lien would not get anything, making the whole process pointless for them.
That's the only way they could try to go after your house, though, and it wouldn't be worth their time unless you had a lot of equity in the property. Even then, it might not be worth it to them, especially with properties selling for so little now, with the market down the way it is.
Hope that helps. Good luck.
ForeclosureFish
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