Default Judgement And Foreclosures In NC

Can anybody tell me what happens to a default judgement against the homeowners by a credit card company after the house has been to the foreclosure sale auction on courthouse steps?

Is this wiped away of do the plantiffs in a default judgement has a right to come after me to collect if I buy the property at the auction?

I have done the research and I am going to be bidding on a first mortgage?

Thanks,

Bill in North Carolina

Comments(12)

  • JohnMichael15th December, 2004

    If the judgement is not in your name and it is not a priority lien you would have no financial obligation when you purchase a property at a foreclosure sale.
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  • MarleyLiv16th December, 2004

    JohnMichael,

    Can you define, 'priority lien'? Do you mean if it is attached to a property? Thanks in advance?

    Ed

  • mitnc16th December, 2004

    You will be clear on the judgement, now if they have a property lein or something that affects title then to get a clear title it will have to be paid. But I have never seen a credit card company get a judgement to affect a title on a home. Not to say it cant happen.

    The judgement is probably on the owners of the home not the home itself, once it changes ownership with a clear title nothing can be done to you. You are also protected by title insurance.

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  • GeneralSnafu18th December, 2004

    Quote:
    On 2004-12-16 10:54, mitnc wrote:
    The judgement is probably on the owners of the home not the home itself, once it changes ownership with a clear title nothing can be done to you. You are also protected by title insurance.


    He is bidding on a foreclosure. There is no title insurance involved.

  • JohnMichael18th December, 2004

    Quote:
    On 2004-12-16 10:19, MarleyLiv wrote:
    JohnMichael,

    Can you define, 'priority lien'? Do you mean if it is attached to a property? Thanks in advance?

    Ed


    The priority of liens is generally determined by the chronological order in which the lien documents are recorded; tax liens, however, have priority even over previously recorded liens

    Neil Cummings and Kirk A. Davenport have a great paper on this issue that you can download at: http://www.lw.com/resource/Publications/_pdf/pub1066_1.pdf

    See the Super Lien Law an amendment to the New Jersey Condominium Act as an example of 'priority lien

    Also see http://dirt.umkc.edu/dd2001/DD01102001.htm
    www.dnrec.state.de.us/.../MetachemTaskForce/ Components/Report%20Section%20on%20Liens%20and%20Superliens.pdf
    http://www.meislik.com/main/cases/most_recent/P20/
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  • RealtorMojai3rd January, 2005

    I bid on a property foreclosed by the homeowners assoc for unpaid dues in NC. Can anyone tell me if I will be responsible for the second mortgage as well as the first mortgage?

  • JohnMichael3rd January, 2005

    Quote:
    On 2005-01-03 13:36, RealtorMojai wrote:
    I bid on a property foreclosed by the homeowners assoc for unpaid dues in NC. Can anyone tell me if I will be responsible for the second mortgage as well as the first mortgage?


    Yes you will!
    [addsig]

  • RealtorMojai3rd January, 2005

    Thanks ... I have bid $5000 on the property which I guess covers the HOA dues ... assuming I win the bid, do I then assume both loans i.e start making payments on both loans?

    Also please clarify whether a "subordinate Deed of Trust" can usually be interpreted to mean a seond mortgage

  • JohnMichael4th January, 2005

    You kind of scare me "You guess it covers the HOA dues". What exactly are you bidding on my friend?

    No, if you win the bid you can not assume the loans!

    We still need to know what you are bidding on!

    Yes a subordinate deed of trust can be interpreted as a 2nd or even a 3rd mortgage.

    Forgive me but I thank it's time to learn more about foreclosure investing by taking a course, reading some books or something. You can find some great material at the library or used bookstores.
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  • GeneralSnafu4th January, 2005

    Quote:
    On 2005-01-04 18:53, JohnMichael wrote:
    You kind of scare me "You guess it covers the HOA dues". What exactly are you bidding on my friend?

    No, if you win the bid you can not assume the loans!

    We still need to know what you are bidding on!

    Yes a subordinate deed of trust can be interpreted as a 2nd or even a 3rd mortgage.

    Forgive me but I thank it's time to learn more about foreclosure investing by taking a course, reading some books or something. You can find some great material at the library or used bookstores.




    In Florida, if you are the winning bidder on a subordinate mortgage foreclosure, the law says that the senior mortgage holder MUST ALLOW you to assume the senior mortgage without qualifying.

  • callyko2nd February, 2005

    General Snafu,
    Do you by any chance know which Florida Statute # you were referring to in the previous post? Thanks in advance!

    "In Florida, if you are the winning bidder on a subordinate mortgage foreclosure, the law says that the senior mortgage holder MUST ALLOW you to assume the senior mortgage without qualifying."

  • JohnMichael2nd February, 2005

    Quote:

    In Florida, if you are the winning bidder on a subordinate mortgage foreclosure, the law says that the senior mortgage holder MUST ALLOW you to assume the senior mortgage without qualifying.


    Sorry but this is not correct!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    [addsig]

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