Debtor filed a lien / loan on his property to himself (fraud?)
This is a weird and possibly illegal activity. I won a $50,000 judgment against someone. His only asset is his house. He has a first and second mortgage and he knew that I was going to put a judgment lien against his house for the $50,000 amount in 3rd position as soon as I was legally able to do so.
Days before I was able to file my stamped Abstract of Judgment the LA County Recorder’s Office, the judgment debtor filed what is classified as a "private party lender" lien TO HIMSELF for $89,000! I think he was thinking that if he is in 3rd position then when I file I would be after him in 4th position.
No actual refinancing of the 1st and 2nd occurred. He is just basically trying to say "I loaned $89,000 from myself to myself and it's secured on by this property" and anyone who files a lien after me can only recover their funds after I get mine.
Is this legal? What can typically be done if not?