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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Probably a squeaker Posted by Ward-CA- on April 29, 2003 at 0:38 AM In Reply to: Judgement liens posted by Ken LoFrano on April 28, 2003 at 2:47 PM : I am the holder of a Judgement lien against an individual and his wife. I've been pursueing a judicial foreclosure for six months and finally got a court date for the homeowner to show cause. I was just notified on Thursday of last week the 1st trust deed holder scheduled a forclosure sale due to default on the loan. My question is: There is a first of $105K a Second of 35K and then I have a judgement lien for $175K against the assets of the couple, the house appraised at $400K. The person filed for Backrupcy protection on Friday. If the house goes to forclosure sale after the relief from automatic stay is granted will I be in a position to collect all monies bid above the minimum bid to satisfy my judgement or will I be left to go after the homeowner when he gets the residual monies from the sale through backrupcy? =•=•=•=•=•=•=•=•=•=•=•= Jan, I wonder if you have recorded an abstract of your judgment (AJ) in the county where the property is located? I’m sure you probably have since the size of your judgment tells me you probably had an attorney involved in getting the judgment. If so, he probably made sure the judgment was recorded as an abstract of the judgment on your behalf. If you’ve recorded an AJ and it was done more than 90 days before the judgment debtors filed their bankruptcy then your recorded AJ will be considered a secured lien, and as such, non-dischargeable in the judgment debtors’ bankruptcy action. My analysis shows the judgment debtors only enjoy a gross equity of $85K before deducting for their combined homestead deduction. Thus, if their combined deduction is more than $85K you won’t get your judicial foreclosure past the homestead hearing. Of course I’m supposing the property is their present home and they both live there. Now to your query— Right now in Southern California properties are being bid up at the trustee’s sales at a predictable 80%—85% of the perceived Fair Market Value of the property. That means that if your property is located in this area, you can expect the 1st to be bid to $320K—$340K, an amount sufficient enough to pay off the entire indebtedness of the property (which comes to $315K). So the answer to your question is YES, there probably would be sufficient money bid to pay off the $105K first lien, and next pay off the $35K second lien and leave more than enough money to pay off your third lien of $175K. However, if the liens are continuing to increase in size due to accumulating, unpaid interest and foreclosure expenses are added in, just hope the property’s value grows right along with said creeping indebtednesses. Hope this helps. Follow Ups: Re: Probably a squeaker ken 8:13 AM, 04/29/03 (4) With better info we're not even close.. Ward-CA- 12:03 AM, 04/29/03 (2) Re: With better info we're not even close.. Ken Lofrano 11:28 AM, 04/30/03 (1) Back to my original analysis... Ward-CA- 5:46 PM, 04/30/03 (0) Re: Probably a squeaker Jorge 8:37 AM, 04/29/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I am the holder of a Judgement lien against an individual and his wife. I've been pursueing a judicial foreclosure for six months and finally got a court date for the homeowner to show cause. I was just notified on Thursday of last week the 1st trust deed holder scheduled a forclosure sale due to default on the loan. My question is: There is a first of $105K a Second of 35K and then I have a judgement lien for $175K against the assets of the couple, the house appraised at $400K. The person filed for Backrupcy protection on Friday. If the house goes to forclosure sale after the relief from automatic stay is granted will I be in a position to collect all monies bid above the minimum bid to satisfy my judgement or will I be left to go after the homeowner when he gets the residual monies from the sale through backrupcy? : =•=•=•=•=•=•=•=•=•=•=•= : Jan, : I wonder if you have recorded an abstract of your judgment (AJ) in the county where the property is located? I’m sure you probably have since the size of your judgment tells me you probably had an attorney involved in getting the judgment. If so, he probably made sure the judgment was recorded as an abstract of the judgment on your behalf. : If you’ve recorded an AJ and it was done more than 90 days before the judgment debtors filed their bankruptcy then your recorded AJ will be considered a secured lien, and as such, non-dischargeable in the judgment debtors’ bankruptcy action. : My analysis shows the judgment debtors only enjoy a gross equity of $85K before deducting for their combined homestead deduction. Thus, if their combined deduction is more than $85K you won’t get your judicial foreclosure past the homestead hearing. Of course I’m supposing the property is their present home and they both live there. : Now to your query— : Right now in Southern California properties are being bid up at the trustee’s sales at a predictable 80%—85% of the perceived Fair Market Value of the property. That means that if your property is located in this area, you can expect the 1st to be bid to $320K—$340K, an amount sufficient enough to pay off the entire indebtedness of the property (which comes to $315K). : So the answer to your question is YES, there probably would be sufficient money bid to pay off the $105K first lien, and next pay off the $35K second lien and leave more than enough money to pay off your third lien of $175K. : However, if the liens are continuing to increase in size due to accumulating, unpaid interest and foreclosure expenses are added in, just hope the property’s value grows right along with said creeping indebtednesses. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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