Collecting on lien during bank forclosure
I have a judgement lien on a contractor that has been in the courts and cost me over $28,000 in attorney's fees.
He has declared bankruptcy and the house I have a lien on (his half ownership of the property) is going into bank foreclosure.
He has approx 10 years equity in house that he is walking away from after it has been on the market for a year.
Does this mean I will be unable to collect anything he owes me on the judgement lien?
Most Popular Reply
Lynette,
A judgment against the contractor created a lien on any real estate the contractor owned in the county where the judgment is recorded. When the property goes through foreclosure, your lien will be extinguished, but NOT YOUR JUDGMENT.
Since the contractor has moved to a new state you need to "domesticate" your judgment in the county where the contractor is now living. Once you do that, then your judgment will once again attach a lien to any real estate the contractor may own in that county and your judgment can still be enforced.
Your attorney should be able to handle this for you.