Lien and Foreclosure

[Yurgee]

What is the name of your state? NY

My girlfriend went through a divorce 5 year ago an her ex-husband has the house but in the settlement agreement was ordered to pay her $70,000 in October of 2004. Shorlty before that date, her ex filed bankrupcy. She was notified becuase she was someone that he owed money to.

She was instructed to place a lien on the house for when he was to sell it, she would get her 70k. She did so and was notified yesterday that the bank is foreclosing on the house.

I dod not have all of the details at this moment, but I would like to know if she is still entitled to the 70k after the bank sells the house or is she entitled to purchase the house for what is owed?

There is a balance of 54k on the house an it is currently valued in the 180k - 250k range.

 

[seniorjudge]

Your post is rather confusing, but let me just tell you that if the lender has the first lien and your friend has the second lien, when the first lien is foreclosed upon, the second lien disappears 'cause the foreclosure kills it deader than a doornail.

Your friend, however, may have other remedies. It depends upon the wording of the judgment in the lawsuit between her and her ex. See what that judgment says.

 

[Yurgee]

rewrite

I did read my first post and you're right it was a bit confusing.

Her ex had the house and did not want to pay the 70k on the date that he was ordered to pay. I am assuming that someone told him to file bankrupcy because he owed her the 70k. He did so and she did not get the money. She was informed to place a lien agaisnt the house in the event that he sells she can get the 70k.

Yesterday she was notified that the house which she has had the lien against is going into foreclosure.

Will the bank that forecloses have to give her the 70k if it is there or can she by the house?

One other note. there is another lien against the house for 5k which her husband owes to someone else.

 

[seniorjudge]

"Will the bank that forecloses have to give her the 70k if it is there or can she by the house?"

Read my first post. I answered that question.

 

[Roselady]

The first lein holder gets all his money- legal fees, f/c costs & fines FIRST--
Then the second lein gets a go at what ever is left.

Probabally not alot, as these houses sell for alot less in foreclosure sales.
Maybe nothing.

It would probabally be better for her to buy him out & THEN sell the house herself.

 

[GUMBOYAYA]

The first lein holder gets all his money- legal fees, f/c costs & fines FIRST--
Then the second lein gets a go at what ever is left.

Probabally not alot, as these houses sell for alot less in foreclosure sales.
Maybe nothing.

It would probabally be better for her to buy him out & THEN sell the house herself.

You need to contact the bank asap, tell them you are the second lien holder, pay them off, don't forget to ask for some of the fees to be waived, then sell the house yourself. You can make more money if you act fast.