Expert: Dick Dennis - 11/1/2011

Question
QUESTION: Hi,I have a property that I own with a friend but she has been
living there past several years.The property was owner financed
(no bank)& we currently owe just under $17,000 and she informed me due to hardship and old credit card bill the midland funding who
has been ripping consumers off and filing false affidavits
with their lawsuits,entered a motion on the pleading/summary
judgement and the judge is waiting to rule.I don't think
she can hire an attorney or represent pro se,so at this point
sounds like she wanna be done with it.My concern is how this
will affect the property cause I know the lawyer will lien it
if he can & when? The amount is around $2500 but my question is
can our investment/home be taken in near or foreclosed on this action or will the lien just sit in case we ever try and sell the property? She also has social security only income and I thought I
asked will the judge order her to pay court cost fees when midland
win the suit? Thank You Very Much

ANSWER: I'm not sure to what you are referring, Bobby. I never heard of Midland. But I do know that as long as you have been paying your mortgage payments all right and the balance of your mortgage to the previous owner is not due, they cannot foreclose on your property legally. The previous owner has a mortgage on your property, therefore a lien. She can sell her interest in her lien to pay whatever her problems are, but I do not believe she has the right to force you to do anything you do not want to as long as you are current with your mortgage to her. To make sure, you may want to consult with a REAL ESTATE attorney to protect your interests. I do wish you well.

Dick Dennis
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Thank you dennis for responding if you will I will like to ask you again specificly,when the creditor judgement is granted against her by the judge can he put a lien on the property even though it is owner financed and not through bank,he still can attach it even though we both own it? my last concern is I don't think she will be reducing or paying off the lien right
away and I am bit concern due to the fact it sits there maybe draws interest.
What will happen if the lien remain unpaid and we pay the property off? Reason I ask of the possibilities I don't want some judgment to entitle
a creditor to force a sale on my home? Thanks so much for your time

Answer
The only creditor that may force you to sell would be a creditor that YOU owe money to, Bobbie. The previous owner owns the mortgage, as I understand it. She owns a lien, not the property because you bought the property from her and you have the title to the property (at least that is the way I understand it). So, the only thing the judge may give HER creditor is a lien on her lien. As long as you continue to make your payments as agreed, neither she nor any of her creditors can force you to move or foreclose on YOUR property.

The only interest the former owner has in your property is the mortgage (lien). That is the only asset her creditors may attach . . . BUT NOT THE PROPERTY ITSELF. If you're not understanding this very well, you probably should go talk to a REAL ESTATE attorney. I do wish you well.

Dick Dennis