Will A Personal Lein Be Recognized At Foreclosure?
I placed a personal lein on a home that I previously pulled out of foreclosure for a friend. I paid $15,000- in back taxes, mortage payments, late fees, water/sewer payments, plus rehab work. I placed a lein on the property to cover getting paid back someday.
Well I am no longer a friend to this person and the property is being foreclosed upon due to not paying the mortgage. I noticed it up on the auction block this morning with an opening bid of $8,129-. It is to be auctioned off on the county courthouse steps in May.
How will I get my $15,000- paid back to me in this scenerio? Any insight will be appreciated. 
Hi,
Well, I'm not an expert in this one, but I can tell what I would do. Go to the sale in May and bid for the property your self. If you win the bid you'll get the property, if not at least you'll get a chance to raise the bid high enough to cover your lien against the property.
Now, that's one way to do this. Make sure to check on the seniority of your lien.
Let me know if it makes sense.
or you can go to the guy and say that you can save him from foreclosure on his record by taking his property "subject to", getting a deed for his property assigned to you and brining his mortgage payments current and maybe you guys can be friends again.
Regards,
Alexander
Better yet, as a 2nd lien holder, you have the opportunity to negotiate with the first lien holder. Make sure you tell them you have the 2nd.
You should be able to negotiate to buy the 1st at a discount, bringing you into 1st position. Now you can foreclose.
You will also have stronger negotiating power with the "friend". If you want to sell the house, you could pay the friend a small sum to leave (make sure you get a deed), avoiding foreclosure altogether.
Before you go through all this, you may want to see that there aren't any other debts, i.e. back taxes, water liens, etc. since you are assuming this risk as well. I guess it all depends too on how much the house is really worth.
Good Luck.
Melissa
If you recorded a lien on the property in the official records of the county where it is located prior to the foreclosure suit being commenced, the lender would need to add you as a party to the suit in order to cut off your interest in the property. You will want to speak to an attorney in your state on this but if you were not personally served in the suit, your interest will survive the foreclosure suit as it would not be one of the interest foreclosed by that suit. If you never recorded your lien against the property and all you have was a promissory note to evidence it you are SOL.
I had a mechanics lien on a property that was up for sale in March. The sherriff's Dept was at my house at least four times a month. I was in 2nd position. They could not sell the property until I signed off on the lien.
I am in Pa. I don't know what your laws are.
Lori
[addsig]
Check with your local Foreclosure laws/regulations on this, but in Florida the difference between the final bid amount and the original judgement amount ($8,129) is deposited into a court registry. After the sale, anyone having a legal interest in the property (including the previous owner) can petition the court to disburse the funds. So in your case, let's say the property sold for $70k, after clerk fees, etc. we'll say the difference is about $60k ($70k bid less the judgement ~$8k). You can now file a motion to get your $15k out of that $60k.
Hope this helps, good luck.
Rob
yes you can make a claim if there is surplus remaining. moneys will be distributed according to priority thats why you should find out your position in this matter.