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Updated over 7 years ago,
How do federal judgements impact property
I have been researching an upcoming foreclosure property, where the owners are involved in multiple lawsuits through their LLC. I had ordered a professional title search for the property - which for some reason has been delayed. What is unclear to me how the other judgments would impact the outcome of the foreclosure result and title.
I do believe that these folks are in way too much legal .... for a rookie like me to get involved - but I guess it can be a good information gathering and learning experience for me. Here are some of the things I have come up with
1. The first mortgage is being foreclosed and there is no other mortgage
2. There are HOA liens which are proceeding as a separate case - but there is no reference between the the cases, so my guess is that those will stay after the auction.
3. There are fraud, RICO cases in federal courts, which have declared judgments of more than $100 million. Judgments were declared about a year ago. But none of them references this particular property - its as if everybody is unaware of its existence. The plaintiffs have filed follow-ups to identify assets which can be used to realize the payment, but those have mostly been to other companies involved in the lawsuit.
4. The defendant lawyers who were litigating the federal case have filed a lawsuit for non payment of fees. But this is rather recent and has no judgment.
5. There are loans against the LLC which have defaulted and have judgments (in federal court) filed, but there is no mention of this property as a collateral in any of the documents.
The kicker is, none of these federal cases are referenced in the state foreclosure that is being done by the first mortgage holder. My guess is that even the title search will not show these judgments as liens. I know that pursuant to some of the earlier judgments associated with (3), the belongings of the defendants in other states was auctioned off.
I am curious, once the 20 day waiting period in PA passes and I get the deed signed over to me, how many of these other lawsuits can come back and invalidate that transfer? Would I have to deal with them?
Thanks for your insights.