Looking for thoughts, opinions, and feedback on a purchase & lien situation.[ Edited ]
10-07-2012 07:41 PM - edited 10-07-2012 07:42 PM
Thoughts, opinions, feedback, and information would be greatly appreciated.
The numbers and names have been changed to protect those involved.
* person's account goes to collections
* the account then goes to the attorney and he files a lawsuit
* judge issues a judgment
* lawyer goes back and asks for a property (real estate) lien
* judge issues a real property lien
* the maximum time passes
* before the lien expires, the attorney goes back to court to renew the lien
* judge awards the "renewal" on the lien
* somewhere in all of this, the person does a quick claim deed of the property to someone else
* somewhere in all of this, the bank is made aware of what is going on
* after lien renewal, the "owners" of the property are ready to walk away, do a quick sell, dump the property
* property is available for purchase
* the property is worth 100k
* the mortgage is worth 50k
* the collection/attorney lien is worth 200k
* the "owners" can not even think about selling the property for what it is worth or what the lien's are worth (mortgage and collection/attorney)
* the "owners" quick claim deed the property to me
* I pay off the current mortgage and closing costs
* the "owners" get a few bucks in their pocket
* I "own" the property but there is still the collection/attorney lien on it
* I ignore the collection/attorney lien forever and ever OR I try to settle with the attorney for a much smaller amount of money for a lien release
* someone (either the original owner or the current owners or a bank representative) negotiations with the attorney for a lien release for approximately 23k
* the mortgage gets paid off at 25k
* the remaining 2k pays the sellers costs for closing
* What could backfire with Proposal A? B?
* Could the attorney force a sale of the property to satisfy the lien?
* Could the attorney change tactics and decide to personally come after me if I own the property?
* The "owners" are ready to allow the house to go into foreclosure (they are done with this property and it's legal problems). Can they legally try to negotiate a settlement for the collections/attorney lien, even though it developed from someone else's collection? (I think they can since the lien follows the property, not the property owner, per se.
* Based on the attorney's behavior of renewing the lien after xx years, what are the "chances" that the attorney would pay off the mortgage of 25k so that they would own the property outright? The condition of the property is such that it can not be a rental or income producing property. Nor could they sell the property for what is now "owed" on it. I think the original debt is very close to the equity in the property. Does not include legal fees or interest.
I am looking forward to reading all the speedy replies! Thank you!!
** edited to do a spell check!