If a person's property goes for foreclosure what happen to monies owed to others?
Question:
person"s guardian.
Answer:
The foreclosure sale will have a trustees bid that will include principal, trustees fees and arrearage plus lender advances. It is unlikely your bill was considered but should the sale bids exceed the trustees opening bid, your debt if it was in the form of a lien will be paid on a first recorded first paid basis. Should the property revert back to the lender you will have to seek payment from another method. It is not the duty of the lender foreclosing to pay you until they recover their funds first including expenses.
They will put a lean on the property and when it is sold every body gets the money that is owed them. The rest goes where ever to the banks and any left over monies owed must come out of the pocket of the owner or the estate if the person has passed away.
Property foreclosure only pays off the lender who wrote the loan for the property. The mortgage company won't pay off the credit cards or other debts including any bill you submitted to the estate. You can apply for a lien but it takes many weeks to get this applied to the property and by then it will probably be too late.
slap your lien on that property immediately.
it is true that the foreclosure does not cover other debts of the estate. it is a means of the lender recovering past due mortgage payments, their attorney's fees to foreclose, as well as obtaining the property back, so they can sell it to someone that will pay.
You only receive money if your bill would qualify you to place a lien. If you did not prior to the foreclosure you can't do now, only prior.
During the notice of sale period, all creditors have an opportunity to become a part of the foreclosure action. Most do not for various reasons. While they are not guaranteed repayment from the foreclosure, they place themselves in position to reclaim any amounts left over from the sale. You may be entitled to excess proceeds from the sale.
Best of luck.
The only way you get a chance to get your money from the foreclosure of the property is to have a lien on the property. And to answer your question if the finance comp will pay all liens is dependant on the lien position of the company. If it is the first lien position, the credit bid at the auction will be just for it's expenses and lien amount. If, by chance, someone bids more, then the additional monies, will follow the chain of command of lien holders and get paid in that order. Unfortunately judgement liens, which I think you might have, are towards the end of the line. If you think the home is worth all the liens attached, you might want to show up and see if you can win it at the auction.
Regards
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