Release Of Liens/judgements
Need some answers please.
Hv a seller who received his NOD. Is behind on the 1st, behind on the 2nd, behind on a LOC also fm the 2nd. He also has judgements aganst him fm a supplier to his business, his businesses insurance co and his mother in law.
I am trying to get him to deed me the porperty and then i'll negotiate with the 1st , 2nd & 3rd (for substantial reductions fm 2nd & 3rd and maybe a reduction fm 1st, at least clearance of arrears). Right now w/o any money going to the the judgement holders he has a little equity (not enuf to satisfy jungement holders) Lets say $15000 equity andgoing fast.
If I succeed in my plan (deed & discounts) do those w/judgements have any recourse against me for their liens? I believe they cud only try to collect fm him personally not me after I've satisfied mortgage holders and bought the property. Appreciate any input on who' s liable for what if I gee the deed.
Thanks
If you can get the property, it, but not you personally, will be on hook for those debts.
And I'd be surprised if you could not get reduced payoff amounts and deals with his creditors...because if the 1st were to complete its foreclosure, the rest would be wiped out.
Thanks for the input John. That's what I thought but needed to be clear. Am I correct that these judgements still attach to the seller, but the motrgage indebtness (1st, 2nd & 3rd) are released fm him personally?
Thanks
Once you gat a release that is it as far as you are concerned. The lien holder can still sue for any shortgage but not against you or the property once you have a release.
Good LUCK and Thank You
Hope this helps some
Ted Jr
The judgement is against the seller but it attaches to the property. You may be able to get discounts on the mortgages ,but you will have trouble getting tilte insurance with the judgements filed against the property. You'd have to discountt and settle the judgements also. That's a lot of work for $15k equity which continues to decrease. with the passage of time.
You may be better off just buying the 1st at the auction if the amount of equity meets your criterial
Ok, so what I'm hearing is that I would hv to go to each lien holder against the property and negotiate w/ each for reductions or total release. If they do not agree and I take posession of the property then the liens remain attached to the property. I guess these liens are still attached to the seller also, so whoever pays or negotiates down the amounts first (me or him) gets them released fm the record and fm the other party. Is this correct??
Thanks