I have judgement lien for child support, property foreclosed...?

Question

The attorney sent me some papers to release the Judgement lien because they are in the middle of selling the foreclosed property. They are offering me $300 to sign. It seems like they want to buy me off but the amount to me seems unjust. What should I really be doing with this judgement lien and what can I get them to offer me to release it?

This is my son's father's property not mine. to note. I also contacted the lawyer and told him I would not sign until the judgement was paid which is at 4,333 and he said that the bank would not pay and that if I am unwilling to sign then they can get it released themselves by going to court. Is this true? Because I told him I would not sign until the judgement was paid in full and he said if I changed my mind to call him.

Answer 1

Foreclosure is essentially a law suit and costs the lender money to complete. On top of that the judgment lien must be paid off before the foreclosure can be completed so the signature they are requesting from you would kill both debts and allow the foreclosure to be completed. On the other hand, this lien may be to your advantage in the sense it would allow you to keep your house longer because until it is paid off, the bank can't take back the property. Don't be fooled, because the bank can always come after you for more money after foreclosure and the judgment lien is likely accruing interest as it goes unpaid. Your best bet would be to get your own lawyer to help you determine if an agreement can be worked out to insure the bank will not come after you after foreclosure and you can kill both debts in full with one signature.

Knowing that the property is not yours, the lender is trying to buy your $4000+ judgment (money owed to you) for $300. Do not sign!!!!!

Answer 2

Of course they are trying to buy you off! They can't sell the property without the release.

You say it is a child support lien. How much is it worth today? Since it is really supposed to be for the support of your child/children, you need to get something closer to what's it worth. You may have to be realistic and realize that you won't get 100%

If the amount is more substantial, it may be worth conferring with an attorney before signing anything. I know they're expensive, but if you are owed $10k or $20k, the last thing you want to do is settle for $300. This is actually the moment you were waiting for (not the foreclosure, but the house sale) when you got the judgement and put in the lien!!

Good luck! Don't let their lawyers bully you!

Answer 3

No, the lien does not stop foreclosure, but they do have to notify you (which is why you got a summons). Once the home is foreclosed on and resold (which could take many, many months--and I've seen cases where it's taken well over a year), the mortgage company gets paid first and once they are *paid in full*, IF there are excess funds (funds left over), those funds are distributed to those with additional liens on the property. If there are no excess funds (which is the case the biggest majority of the time), you don’t get anything. Be aware that if there are other liens on the property, you may not be first in line for excess funds. For example, if there’s a 2nd mortgage they *generally* get paid before other lienholders (it's actually the court that determines/orders how excess funds are disbursed). EDITED TO ADD THIS: I have no clue where snjas1 got his/her info from, but it is completely legally inaccurate.

Answer 4

Hold out for more. Look up as much online about the law dealing with this. Tell them your uncle the lawyer said this amount was too low.

Answer 5

Personally I think you owe it to your children to stick to your guns and collect their child support money. We are not talking abut your money, we are talking theirs and they are legaly entitled to it. It is bad enough that dad is a deadbeat, you need to do what id right.

So unless he only owes you $300 I would not sign.

Answer 6

They have to pay the judgement to sell it.