Results 1 to 3 of 3
  1. #1

    Default Foreclosure And Satisfaction Of Junior Liens

    I live in Florida.

    My Ex-husband got our house in the divorce proceedings. He refinanced and I was removed from the deed - however, he was not able to get enough money to pay me all my settlement, so I'm owed $24,000 when the house is refinanced or sold. In addition, I received another judgment against him for about $4000 for unpaid bills.

    Now his house is in foreclosure(for $185,000 plus fees, about $200,000) Both my judgments are listed as liens on the property, but they are subordinate to the original mortgage. The house is supposed to be sold at auction on 04/09/08. In this area, about 95% of the houses are bought by the bank so I'm assuming that the bank will buy the house at auction for $100 (starting bid).

    My question is. . . will the bank have free title to the house at the auction? Will the bank have to pay off my liens in order to gain free title to the house? Or will they wait until the house is actually sold to give me my money?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Foreclosure And Satisfaction Of Junior Liens

    The lienholder will typically be the only bidder at auction and bid the amount of their lien (unless the borrower owes more than the home value). In Florida, a court will typically review the purchase price to confirm that it was fair. If the auction fetches more, the balance can be applied to junior liens. You are free to go to the auction yourself and bid to protect your interest. The purchaser at the foreclosure sale will acquire the property free of your liens.

  3. #3

    Default Re: Foreclosure And Satisfaction Of Junior Liens

    So you are saying that if the bank purchases the house back for $100, (even if the mortgage is worth $185,000) they get the house, and I won't have a claim against them for the liens? It's like the liens have disappeared? I don't understand how they can get clear title if the liens are attached.

    If anybody on the street went to purchase the house, I've read that they have to check the titles to make sure there aren't any liens that need to be satisfied in order to gain clear property to the title. Is the bank exempt? That hardly seems fair!

    Would you have any websites where you got that information? If so, please post them. Thanks.

    1. Sponsored Links
       

Similar Threads

  1. Foreclosure: What Happens With Junior Loans During Foreclosure
    By CA_Foreclosure in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 03-14-2011, 08:00 PM
  2. Foreclosure: Liens After Foreclosure Redemption
    By Geeves23 in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 01-22-2011, 06:43 PM
  3. Chapter 7: Are Junior Liens Extinguished by Chapter 7 Bankruptcy
    By AZroad2ruin in forum Bankruptcy Law
    Replies: 1
    Last Post: 03-26-2010, 09:24 AM
  4. Foreclosure: Liens on Other Property After Foreclosure
    By smokin2k6 in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 10-17-2008, 02:17 PM
  5. Mortgages: Senior and Junior Liens with Two Mortgages Filed On The Same Day
    By Invest2 in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 08-02-2007, 08:37 AM
 
 
Sponsored Links

Legal Help, Information and Resources