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Hi - my name is XXXXX XXXXX I'm a Real Estate and Consumer Protection attorney here to assist you.
If you stop paying the mortgage - so that your home forecloses - the mortgage company will be paid first.
If there are no other liens on your home, the judgment holder you asked about will get whatever is left over after the house is sold in a foreclosure sale.
(If the mortgage company and the judgment holder are both paid in full, and if there is still anything left over, the amount left over would belong to you.)
if there is a lien judgment lien debt amount 300,000 and the home market value is 1.5mill. will the home get sold for about the market value? reason I'm asking is that when there is a lien on the home, it will be sold for significantly low price. or the mortgage bank will negoticate with the judgment lien creditor to remove it when they sell it?
What is the balance owed for the mortgage?
So the equity is $400,000.
if it's sold at market value at normal housing market meaning no auction I guess.
The mortgage company does not care about the judgment holder, and does not have to negotiate with the judgment holder.
what does that mean? the mortgage company will sell the home to just cover their lone balance
If you stop paying the mortgage, the mortgage company can sell the house at auction to the highest bidder.
The mortgage company can also bid, and this is what they often do if there are no bidders, of if the bids are not high enough.
what if the house is not sold at auction? will the bank buy it them selve? which I heard it won't get sold at auction if the price is high over 1mill. usually low price ones get sold at auction I heard.
Yes - the bank can also bid on the property.
There have been many cases where the bank has purchased a property for a minimal amount.
if the bank purchased my home themselves to only cover the lone balance, what happnes to the judgment lien? will they be removed or still on it?
The judgment lien gets removed.
This is because the mortgage lien is superior to the judgment lien.
Do the mortgage lone banks purchase the home in most cases if it doesn't get sold at auction? so they can sell it at public market at higher price?
That depends on whether they think the house can be sold right away at a substantially higher price - as they do not want to own any homes for an extended period.
So, in areas where the housing market is brisk - such as thriving major cities - a bank will be more likely to purchase a house in a foreclosure auction than in an area where the housing market is depressed .
then what's going to happen if the home doesn't get sold at the auction?
The bank will re-schedule the auction - often for 6 months after the first one.
what if it doen'st sell at later auctions?
That also happens often, and that is the reason there are many who are still in their homes years after they have stopped paying the mortgage.
then how will they sell my home if that happens?
If they want to sell your home, they have to first purchase it at an auction.
Or sell it at an auction.
Otherwise, the house does not get sold.
thank you for your answer. I kept trying to rate you but the button doen't work?
You should be able to provide a rating now.
Also I have another question. When you file bankruptcy, my primary home can be sold by judge's order if there is high-equtiy. Will I recieved $75,000(homestead examption) before judgment debt lien on the home get paid?
If you file a Bankruptcy, you get paid the homestead exemption after the mortgage company gets paid, and before the judgment holder gets paid.
Also, if you file a Bankruptcy, that can discharge the judgment, so the judgment holder can no longer try to collect it.
when the home get sold in bankruptcy, will it get only sold at auction?
I have a 300,000 judgment lien on my primary home. loan balance is 1.1mill and the current market value is 1.5mill if sold at normal housing market. can you advice what to do to resolve the 300,000 judgment lien issue?
non payment and fraud but it wasn't fruad but I didn't fight the case so I got the fraud charge.
I want to keep the home if possible. And I want to negotiate with the judgment lien creditor to lower the amount. But since they put lien on my home, they won't negotiate easily. However, if I hint them that I will let the home foreclose, they will be more willing to negotiate right? Because if it foreclose, their lien will get removed and not secured anymore. I need some good advise how to negotiate to lower the debt. I'm willing to pay some but can't afford to pay the full amount in this bad economy.