foreclosure judgment lien
Junior lien on property that is now in default on the senior/lien mortgage?
I have a lien against property as a result of a judgment due to monies owed to me,however, the property is currently in default on the senior mortgage/lien. They almost foreclosed a couple of weeks ago,but was put on hold, because they discovered the junior lien (me) was not notified prior to auction.
My question is, can I move forward with a writ of execution, as I would like, to recoup my monies, or,am I not able to because of the defaulted mortgage. They do not have a sale date set yet.
Also,it’s my understanding from research online, that all junior liens will be wiped out with a foreclosure sale. Is this accurate?
If it does go to foreclosure and auctions for more than whats owed on the senior,do the remaining funds go to pay the junior liens before the defaulted property owner receives anything?
Thank-you
After a foreclosure sale all liens on the property are wiped out. There is a “ranking” of lien holders of who gets paid first based on timing of the lien and contractual obligations. When the property is sold, the proceeds will pay down the liens in order of priority. If there is money left over after all senior liens to yours have been paid then you will be paid. Depending on the type of lien and the jurisdiction, you can also get a person judgement against the individual. Unfortunately, it will be unsecured, which is much for difficult to collect upon and if this person just went through foreclosure, they probably dont have any money to collect.
