If the creditor chooses not to wait for you to sell or refinance the property, the creditor can try to “foreclose” on the judgment lien . This means that the creditor forces you to sell the property and pay what you owe with that money.
What happens to judgments after foreclosure?
When a creditor is awarded a judgment lien against a debtor's home, the judgment is recorded with the court and county where the creditor's home is located. When a home with a judgment lien is foreclosed, the lien may be paid off all or in part if enough proceeds are received from the foreclosure sale.
Do judgments survive foreclosure?
Using a judgment, a creditor can attach a lien to a debtor's real property such as a home. ... In fact, judgments themselves normally survive foreclosure even when their liens don't .
Which type of foreclosure ends in a judgment?
Judicial foreclosures are rare in California. A judicial foreclosure allows the lender to get a deficiency judgment against the borrower. BUT the homeowner has the “right of redemption,” which allows him or her to buy the home back from the successful bidder at the auction for 1 year after the sale.
What is a final judgment foreclosure?
A final judgment of foreclosure is an order in certain states that a plaintiff/bank gets from the court , which allows them to sell a defendant's home for failure to pay the mortgage.
Can a creditor take all the money in your bank account?
Can a creditor take all the money in your bank account? In most situations, a creditor can take all of a debtor's money in the debtor's bank account, if the money is not otherwise exempt, up to the amount of the judgment .
Can I lose my house if someone sues me?
So, can you lose your home in a lawsuit in California? Yes , but the risk of losing your house usually only applies when you're ordered to pay a large sum of money that you can not otherwise afford. If you have concerns about your ability to protect your home from a judgment creditor, now is the time to take action.
Do you get any money if your house is foreclosed?
If your home is sold in a nonjudicial foreclosure, your responsibility ends once the home is sold . You may have to pay fees relating to the sale, but you won't owe any more money on your mortgage even if the home sells for less than you owe.
Do you lose everything in a foreclosure?
Your lender does not get to keep all the proceeds from the foreclosure auction regardless of the amount. State statute determines who gets paid and when, but as the homeowner, you are last in line to get paid if there is a surplus.
What states do not allow deficiency judgments?
The following states have anti-deficiency laws: Alaska , Arizona, California, Connecticut, Hawaii Iowa, Minnesota, Montana, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Washington, and Wisconsin.
What is a final Judgement?
The last decision from a court that resolves all issues in dispute and settles the parties' rights with respect to those issues . A final judgment leaves nothing except decisions on how to enforce the judgment, whether to award costs, and whether to file an appeal.
What is an approximate Judgement?
an approximate judgment or calculation, as of the value, amount, time, size, or weight of something . a judgment or opinion, as of the qualities of a person or thing. a statement of the approximate charge for work to be done, submitted by a person or business firm ready to undertake the work.
What is a motion hearing in a foreclosure case?
A motion for a summary judgment is filed by the lender and asks the judge to make an instant decision in favor of the lender . The granting of this motion will negate the need for a trial and result in the lender or bank regaining control of the property.
Why you should never pay a collection agency?
On the other hand, paying an outstanding loan to a debt collection agency can hurt your credit score. ... Any action on your credit report can negatively impact your credit score – even paying back loans. If you have an outstanding loan that's a year or two old, it's better for your credit report to avoid paying it.
How can I protect my bank account from creditors?
A judgment debtor can best protect a bank account by using a bank in a state where the law prohibits garnishment against banking institutions. In that case, the debtor's money cannot be tied up by a garnishment writ while the debtor litigates exemptions.
What type of bank account Cannot be garnished?
Some types of money are automatically exempt (protected) from your creditors, regardless of where you live, including: Social Security and Supplement Security Income (SSI) federal, civil service, and railroad retirement benefits . veterans' benefits .
