How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Maverick Your Own Question
Maverick
Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 5766
Experience:  20 years professional experience
16823287
Type Your Real Estate Law Question Here...
Maverick is online now
A new question is answered every 9 seconds

TJI have a confession of judgement as a personal guarantor, with

Customer Question

Hello TJ
I have a confession of judgement as a personal guarantor, with writ of execution filed by the bank, in Philadelphia Court of Common Pleas. The Banks colateral was held in an LLC name, but the property was destroyed in a fire, and after insurance is the mortgage is upside down. I understand the judgement exists over all real property in the County. I read about In Rem v. In personam leins. If I attempt to sell one of my properties, which net proceeds are less than the full judgement amount, what would happen? I understand that I could not walk with proceeds, but could other legitimate creditors be paid from the proceeds? Thanks in advance for your consideration.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.
Welcome! My name is Maverick. I very much enjoy what I do and I hope that you will benefit from this information.
The escrow agent will have a duty to payoff the liens in the order of their legally assigned priority [this usually means in the order they were filed] before giving you the balance of the sales proceeds.
Please assign a feedback rating so JA will compensate me for my time. You are free to ask follow-up questions thereafter at no charge. Please allow up to 24 hours for a follow-up response if I am signed off.
If, for some reason, you are not satisfied with the answer, I would appreciate knowing why so that I can try to clear up any misunderstanding that may have taken place. Also, if you need a refund, just let me know and I will inform JA on your behalf. Finally, you may request me in the future by beginning the question with "THIS IS FOR MAVERICK".
Thank you for using Just Answer. Best wishes for 2015!
Customer: replied 1 year ago.
The answer was adequate, but general, it did not address the question as stated, merely opting to provide the a generic though factually accurate answer. My question stated that the property was upside down meaning, that proceeds would not be remaining. The information regarding the escrow agent priority of liens by date was accurate. Thanks for addressing my question.
Expert:  Maverick replied 1 year ago.
If I attempt to sell one of my properties, which net proceeds are less than the full judgement amount, what would happen?
The above tends to indicate that the property you would be selling would have proceeds that would be available to apply towards the payment of the judgment.
If the property you are wanting to sell is upside down then the whole issue is moot because any proceeds from the sale would go FIRST to pay off the mortgage on that property because it is the first lien in time. The judgment lien against as it may related to another debt would be secondary to the that mortgage lien.

Related Real Estate Law Questions