QUESTION

I own a home in NY that has a private mortge held by a family member. I have several judgement leins against me/the property by creditors. What happens to the creditor liens if my family member forecloses on me?

Asked on Feb 24th, 2012 on Real Estate - New York
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Real Estate Law Attorney serving Anniston, AL at Isom Stanko & Senter, LLC
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I will assume the mortgage held by a family member was placed of record before any of the judgment liens, and that the suggested foreclosure is a "friendly" one to clear the title. Ordinarily, a judgment creditor (following a foreclosure) will have only a right to redeem.  That means, the judgment creditor could - for the redemption period - pay off the holder of the mortgage and take the property in hopes that he could sell it for enough money to recover what he spent to pay the mortgage plus pay the debt owed to him.  I do not know what your State's redemption period is - might be a year - might be less than a year.  If the idea is to cut out the judgment creditors and then have the family member deed the property back to you, that won't work.  Any conveyance back to you will ordinarily restore the viability of the judgment liens.  For specific information on these questions, you should confer with a good real estate lawyer in your area.
Answered on Feb 28th, 2012 at 7:13 PM

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