Hi Kirk, no the judgment came about as a result of a lawsuit I could not answer and thus is secured by NO collateral except for the lien placed on the home by default. the creditor has no property rights otherwise.
I have one more questions...
can't send reply. see error msg:
You don't have permission to access "http://www.justanswer.com/bankruptcy-law/7vepp-engaged-short-sale-process-lender.html" on this server.
I am being told by my realtor as well as escrow that the short sale transaction CANNOT close without this creditor being paid/dealt with in some way. Of course, the property is upside down and the bank is owed twice what they are agreeing to accept in the short sale. They are also offering a very nominal fee to the 2nd liendholder, and a small amount of $$ to assist with relocation -- but the bank will not deal with personal judgement liens such as the one described above, but the lien is currently clouding the title to the property. So if what you're saying is correct, how do we get around the judgment liens in escrow in order that we might close the transaction? I don't care that they maintain a judgement against me personally, but there are obviously no funds available in the short sale to pay them. What say you?
Thank you so very much for your time. I will most certainly POSITIVELY RATE our conversation as it was most helpful. These issues become difficult because neither realtors or escrow officers know the law, they simply know they can't close without clear title, i.e., a release of all liens from the property. So are you suggesting that the short sale can close around these unsecured liens? and if so, how? Is there a specific form/document to be submitted to escrow that gives them the authority to simply ignore the demands from the judgment creditor? Will it require that I file a bankruptcy in order to obtain this document?
remember, in my earlier reply (see above reply Saturday, July 13, 2013 4:51 PM EST) I indicated that there WOULD BE relocation funds made available to me through the short sale which would be sorely needed for me to relocate. Sooo... problem?
yes, you are correct, the relocation funds are definitely NOT proceeds from the sale but rather an incentive provided to get me to cooperate with the sale/move -- hence, "Cooperative Short Sale". But I will most definitely have legal counsel advise the realtor and escrow on this so we can move this thing forward. Thanks so much for all your help!
I do have one last request, can you please provide me with the statute # re: lien priority that you are relying upon in response to my inquiry? It's unbelievable to me how many of the local attorneys are not on the same page with you on this issue when it comes to short sales, but it's logical and seems it should be common sense that this would be the law. I'm searching now for a local lawyer with the smarts to help my broker and escrow understand this. Of course everyone's concern is their ability to obtain clean title. So, though the law may be what it is, how we get to clean title is what's throwing us all I suppose.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).