All Forum Posts by: Andrew Stoll

Thanks Jon.

On a slightly separate note, I've been doing all the title searches via public records (recorder, prop tax, and township). Are these the same resources that title search companies use when searching title?

Steve, I'm not following you, I'm not sure where I answered my own question..?

I'm familiar with the lienholder order, how they get paid with the proceeds from a foreclosure auction, and how they get extinguished. My concern is assuming the homeowners judgment lien (as I would property taxes) when purchasing a home at a foreclosure auction.

Let me throw out a scenario:

1) senior mortgage of $200K, junior mtg of $50K, and a $5K judgment. The auction sale yields $210K. In this scenario, the senior mtg gets paid in full, the junior mtg gets the remaining $10K (w/the difference extinguished), and the judgment gets extinguished as well? Or does the new owner assume that debt? Or does it simply stay with the previous owner as a deficiency?

Thanks for all the replies.

So, generally speaking, if it's discovered through public records that there is a judgment on the owner of a prop that is getting foreclosed, that judgment amount should not transfer to the prospective purchaser via foreclosure auction?

-a

From my understanding, all judgments are liens, but not all liens are judgments.

In Illinois, for instance, if there is a senior mortgage and a junior mortgage (junior because it was recorded after the first), the senior mortgage gets paid first at auction, and then anything left over goes to the junior mortgage, and any subsequent liens on the property.

Judgments in Illinois can only last 7 years before they have to be renewed, and then they can only be renewed once according to the statute of limitation. But a judgment on an individual that owns a house, is that a lien against them, the house or both? And when the house is foreclosed, does that lien stay with the house (if it's not paid off/extinguished with the money from the sale), or does it follow the previous owner?

There are no redemption rights for homeowners after the judicial sale, in Illinois. Only certain junior lienholders can redeem, such as the federal government for tax liens.

In researching titles, I have found many owners to have judgments against them. Being new to the game, I try not to risk acquiring a home that is owned by someone with a judgment against them, especially if I'm not sure if it carries with the home. Does it?

As an example: the owner of a foreclosed home has an $8,000 credit card judgment against them. If I buy the house at the foreclosure auction (Illinois), will that judgment carry with the property? Or does the judgment stay with the person, and not the prop?

Thanks for the help!

-a