If credit card company gets judgement against home in Fl. - What if it is foreclosed

[Martha31]

If credit card company gets judgement against home in Fl. - What if the house is foreclosed on? What happens to the judgements since they are jr. liens?
Any help will be appreciated.

[catleg]

Chances are they get what they deserve -- nothing.

[AngelinaCatHub]

Chances are they get what they deserve -- nothing.

Catleg has always been accurate, and I agree. Florida is a homestead state. The Judgment is against your house to collect funds from YOU. You are not the owner of that house once you give it back. It is not your worry in any case as the lien or Judgment against you in any case could be discharged. The lien now is the mortgage company's problem. Have a good nights rest. 'Hub

[catleg]

I think more generally that if a first mortgage forecloses then it's up to the junior lienholders to make a bid at the auction to preserve any equity they might have in the property. I don't think the holder of the first mortgage is under any obligation to pay anyone with a lesser lien. I think those liens are cleared as part of the process of foreclosure and transferring the deed to the lender. But I'm no expert in real estate...perhaps someone else knows the mechanics of it.

[hereforinfo]

Once the house is foreclosed on, the proceeds will be distributed in the following order:

1. past due taxes
2. primary mortgage
3. secondary mortgage
4. any other liens, in the order in which they are recorded

If there is nothing left by the time you get to #4, those liens will be extinguished/cleared from the title. The judgement against you still exists, it just won't be attached to the property anymore.

[frmrdwn]

I thought any judgements would be discharged after BK. Would the cc companies garnish wages or wipe-out bank accounts? If that's the case, maybe be it is better to stay current with the cc companies and hold-off paying the mortgage? The morgage co. gets to keep your home and it's over. Sounds like the cc company(s) could live with you forever. Really?

[StartingOver08]

I thought any judgements would be discharged after BK. Would the cc companies garnish wages or wipe-out bank accounts? If that's the case, maybe be it is better to stay current with the cc companies and hold-off paying the mortgage? The morgage co. gets to keep your home and it's over. Sounds like the cc company(s) could live with you forever. Really?

Yes, judgments are discharged in BK.

The OP did not say that she/he filed BK, just that they had a judgment that had attached to property.

Hereforinfo posted exactly what happens to judgments. Once the house is foreclosed then the judgment continues to 'follow' the debtor unless the debtor chooses to either pay it, or file BK. Sometimes the judgment expires first. However, in FL judgments are valid for 10 yrs, but can be renewed again for another 10 yrs. See this link about Fl judgments: http://www.lawdog.com/states/fl/judm.htm More about Fl judgments: http://findarticles.com/p/articles/m.../ai_n29418164/

[AngelinaCatHub]

OK, "SO", your second link, does that state or imply that a judgment becomes a lien on any and all non exempt property automatically after it is recorded in Public Records?

Legalese is always fun to read. 'Hub

[StartingOver08]

Yes, the judgment becomes a lien on real property when properly recorded in the county in which the real property is located.

BTW, the judgment becomes due and payable even if its a homesteaded property - but only when you sell the property. It can be accruing for years (found this out the hard way).

That is why judgments are so powerfull. Also why BK is so powerfull!

[AngelinaCatHub]

Yes, the judgment becomes a lien on real property when properly recorded in the county in which the real property is located.

BTW, the judgment becomes due and payable even if its a homesteaded property - but only when you sell the property. It can be accruing for years (found this out the hard way).

That is why judgments are so powerfull. Also why BK is so powerfull!

Just to clarify, I have a small claims judgment upon several people of no pay when it was still profitable to build and sell computers. They are small amounts and simply have been recorded at the Court House, but not against any particular thing. Does that mean, that by their existence, it is a lien? 'Hub

[StartingOver08]

I don't know the answer to that question directly (as I am not an attorney ) - but I know that if they sell any real property they own - in order to deliver clear title, the judgment would need to be paid at closing. That is why many people go to the trouble of getting a judgment - so they eventually get paid the amount due plus interest.

The title company is on the hook if they do not collect the $$ from the seller.

[AngelinaCatHub]

Thanks "SO". I have learned a valuable lesson and that is why I am so much against anyone getting a judgment against themselves but I didn't realize its true power. 'Hub

[Martha31]

May not file BK

I believe I am pretty much judgement proof because I get a disability pension. Also my wife is not on any of my credit card debt or Line of Credit.
She is on the mortgage but that would be the only negative for her when it is foreclosed. Other than an old 1989 rust bucket all my vehicles are in other peoples names. I may file Bk in a couple of years or maybe never, but plan on fighting the credit card companies for a long time. May pay them if they give me one heck of a deal like 20-25 cents on the dollar. Plan on staying in home until sheriff evicts me. September 1, is when I quit making payments on everything but telephone, utilities and insurance. We shall see. I am scared but I think after a few times in the court room I will get comfortable. I do like challenges, so this should meet that criteria.
The phone calls will be recorded and they will be advised of that fact. Especially since florida is a two party consent state for recording calls.
Thanks to everyone for thier input and concern.

[Martha31]

I don't know the answer to that question directly (as I am not an attorney ) - but I know that if they sell any real property they own - in order to deliver clear title, the judgment would need to be paid at closing. That is why many people go to the trouble of getting a judgment - so they eventually get paid the amount due plus interest.

The title company is on the hook if they do not collect the $$ from the seller.

Are you saying the debt would be satisfied by the title company?

[StartingOver08]

What I'm saying is that the title company HAS to collect the funds from the seller for the judgment in order to deliver clear title. Usually this is just deducted from the seller's proceeds at closing. HOWEVER, if the title company makes a mistake and does not pay off the judgment at the time of closing then the title is not clear - and the title insurance would kick in. Naturally the attorney/title agent would still contact the seller for payment but if the seller didn't have the funds, the title insurance would have to cover it.