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Judgement Lein


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#1 Salty54

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Posted 06 December 2012 - 02:17 PM

Five family members are joint owners of property in Minnesota. One of the memebers had a morgatage loan that ended in the bank taking back the house and a judgement lein for 10,000 on the property joinlty owned. That member passed away and now the bank has hired a lawyer to collect a settlement
from the remaining family or sell the property to collect. Is this legal? Can they force the others to sell the property to collect his debt?

#2 LegalwriterOne

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Posted 06 December 2012 - 04:07 PM

Yes.

#3 Tax_Counsel

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Posted 06 December 2012 - 04:14 PM

That member passed away and now the bank has hired a lawyer to collect a settlement from the remaining family or sell the property to collect. Is this legal? Can they force the others to sell the property to collect his debt?


Certainly the lender may hire an attorney to make a effort to collect. However, whether the attorney can force sale of the property depends on details that aren't in your post.

The most important fact is how the property was held just prior to the judgment debtor’s death. If the five family members owned the property as joint tenants with a right of survivorship, then when the judgment debtor died, his interest in the property disappears, leaving nothing for the judgment lien to attach. In that case, the lender’s efforts to force a sale of the property should not succeed.

If, however, the property was held as tenants in common, then when the judgment debtor died, his share of the property (presumably one-fifth) passed to his estate. The judgment lien still attaches that interest and will continue to do so until the judgment is satisfied or the lien expires. So long as the lien attaches to the property, the lender may seek to foreclose its lien on the property, selling the judgment debtor's one-fifth interest in the property. The likely buyer in such a sale would be the lender, since most anyone else wouldn't be interested in buying a one-fifth interest in property with people they don't know unless they get it really cheap. Whomever ends up owning that share, however, can seek to force a sale of the property through a partition action (which any owner may do) to get the cash out of it.

#4 Salty54

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Posted 06 December 2012 - 08:20 PM

The property is a joint tenants with right of surviorship. The Bank and foreclosure took place in Iowa and the land with the judgement lein is in Minnesota. Should we seek legal consel for this? The bank has given us less than a thirty day window to make an offer and upped the original 10,000 to 16,500. One of the party made an offer for half of that to the bank and was accepted. Should we postpone that offer?

#5 Tax_Counsel

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Posted 06 December 2012 - 09:42 PM

Should we seek legal consel for this? One of the party made an offer for half of that to the bank and was accepted. Should we postpone that offer?


Wouldn’t hurt to consult a real estate lawyer in Minnesota about this. An initial consultation shouldn’t cost much and will give the family a much better idea of exactly where they stand/

The bank has given us less than a thirty day window to make an offer and upped the original 10,000 to 16,500. One of the party made an offer for half of that to the bank and was accepted. Should we postpone that offer?


But it would have been better to consult the lawyer before making any offer to the bank. Even if the bank didn’t have a good lien position, it may now have an enforceable contract anyway.

#6 pg1067

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Posted 07 December 2012 - 07:13 AM

the bank has hired a lawyer to collect a settlement
from the remaining family or sell the property to collect. Is this legal?


Of course it's legal. Did you really think it might be illegal to hire a lawyer?


Can they force the others to sell the property to collect his debt?


"They"? The bank cannot force the owners to sell the property. However, if, as you said, the bank has already foreclosed on the property, I can't see any reason why it could not sell the property at a foreclosure sale. If no foreclosure has occurred, then a lot is going to depend on when the judgment lien attached (before or after the now-deceased owner died).


The . . . foreclosure took place in Iowa and the land with the judgement lein is in Minnesota.


That doesn't make any sense. If the property is in Minnesota, then a foreclosure could only take place in Minnesota. I therefore expect that you are using incorrect terminology. Perhaps you meant to say that the lawsuit that resulted in the judgment lien was filed in Iowa?


Should we seek legal consel for this?


I'm sure that would be a good idea.


The bank has given us less than a thirty day window to make an offer and upped the original 10,000 to 16,500. One of the party made an offer for half of that to the bank and was accepted. Should we postpone that offer?


"That offer"? You mean the offer that another person made and that was accepted? I don't know how that could be possible.

#7 Tax_Counsel

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Posted 07 December 2012 - 07:49 AM

That doesn't make any sense. If the property is in Minnesota, then a foreclosure could only take place in Minnesota. I therefore expect that you are using incorrect terminology. Perhaps you meant to say that the lawsuit that resulted in the judgment lien was filed in Iowa?

My understanding of the facts from these posts is that the decedent owned property in Iowa that was secured by a mortgage. The decedent defaulted on that mortgage and the lender foreclosed. The foreclosure was insufficient to pay off the loan, and the lender obtained a judgment for the deficiency. The lender then filed that judgment as a lien against the decedent’s interest in the property in Minnesota. If that understanding is not correct, that may change the outcome.

"That offer"? You mean the offer that another person made and that was accepted? I don't know how that could be possible.

I believe the OP is referring to an offer by one of the other co-owners to pay the lender. However, even if it was someone who was not an owner, surely you know that’s possible. It might be unlikely. It might even be stupid for someone to do. But it is certainly possible.

#8 pg1067

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Posted 07 December 2012 - 01:15 PM

I believe the OP is referring to an offer by one of the other co-owners to pay the lender. However, even if it was someone who was not an owner, surely you know that’s possible. It might be unlikely. It might even be stupid for someone to do. But it is certainly possible.


I don't know about that. The poster asked if "we" (and I don't know who "we" are except for the poster) should "postpone that offer." If it was an offer made by someone other than the poster, then no, I don't know how it might be possible for the poster to "postpone" it (although I'll admit that I don't really understand what it might mean to "postpone" an offer that already has been made and might have been accepted).

If the OP is still following the discussion, I think the point to be gleaned from this little discourse is that there is a fair amount of ambiguity in what you wrote.

#9 Guest_FindLaw_Amir_*

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Posted 13 December 2012 - 02:45 PM

This is a matter that should be discussed with a local Minnesota Real Estate Lawyer to address.




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