Foreclosure in 77546>Question Details

Susan, Other/Just Looking in 77546

I have a secured lein from a divorce that will become due in 2011, none of it has been paid. assuming he will not pay what steps can i take myself to

Asked by Susan, 77546 Mon Feb 1, 2010

foreclose on the property to get the money owed to me?

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6
Hi Susan,

If the secured lien is in first position on the property and he does not pay you, then you foreclose on the property. If your lien is in second position then you "take over" the first. Meaning you also foreclose on the property but you have to keep the first lien current and keep paying that. Assuming that there is equity this can be very lucrative for you. However, if there is no equity in the property then wasting your time and money to foreclose only to have to fund a negative equity property would not be a good use for your money, in my opinion.

Next, if there is no equity you might be able to remove the interest off the property and obtain a deficiency judgment against him directly and this would allow you to garnish wages and perhaps be paid over time based on his income, but at least you would receive your money back, not ideal but it's what I would consider doing. Also, in your state you have a statute of limitations, in my State it's 7 years therefore let's assume he doesn't have "a pot to .... in" he might in the next 10 years and your deficiency judgment will be there waiting for him :)

Since you are asking this question, we all assume that you have not gotten some type of legal representation. I would suggest you first sit down and look at the equity situation first. Look at all the legal expenses and cost of the foreclosure process, and your mental health and decide which is the best way for you to recover your money.

Good luck!
0 votes Thank Flag Link Tue Feb 2, 2010
There is no easy solution for this type of situation. It depends how large the lien is and how many other liens were recorded before this one. Is there in equity in the property is the largest question. Leins priority are established when recorded. Foreclosure is not a inexpensive process depending on the attorney hired, some get paid by the hour and some get paid a fix payment. The more difficult the process , the more expensive the process can be. Figure at least $3000 in fees for a foreclosure attorney fee with good chances the fees can be higher. So you need to make sure you are in a superior lien position and there is some type of equity to tap.

If it can be addressed as a judgement in the divorce it may be better. Like everyone else indicated it would be better to contact an attorney to get your options and risk assoicated with each option.


Good Luck


Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee


http://milwaukeebailout.com
0 votes Thank Flag Link Tue Feb 2, 2010
Susan, this is a problem is see on a daily basis and unfortunately it usually does not turn out good. Your first line of attack would be through the divorce court, if your ex was suppose to make payments you can file for contempt now. If there was no payment plan then your ex is not in contempt and you have no claim until the payment is due and again your best line of attack would be through the divorce court. You do have a right to file a foreclosure suit in either scenario but if there is a mortgage on the property you come behind that and I wouldn't doubt that your party to that mortgage meaning you would be forcing a foreclosure on yourself.
Good Luck
Bob
0 votes Thank Flag Link Mon Feb 1, 2010
This is a legal question and you will need to speak with an attorney. I'm sorry this is happening to you.
Take care,
Pam Miller
713-269-9017
0 votes Thank Flag Link Mon Feb 1, 2010
You need to check with a board certified real estate attorney.
You may or may not be able to foreclose or gain possession of the property unless you have a mortgage on the property or depending on if you are a junior lienholder. Your lein could in fact be worth 0 if the 1st mortgage holder forecloses. There are just so many senarios and situations, you'll need to get directly with an attorney to see where you stand and what your rights are.
0 votes Thank Flag Link Mon Feb 1, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Since it would be a legal matter, hire a lawyer to walk you through the process. The last thing you want is to lose some of your rights because you did some paperwork wrong.
0 votes Thank Flag Link Mon Feb 1, 2010
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