Legal Question in Real Estate Law in California

Re: Note on a house

Sir, I'm sorry to say that your question reflects a fair amount of misuderstanding about the business of secured lending, collections and the enforcement of judgments. I'd suggest that if you are doing a significant amount of real-estate lending to strangers, that you either ally yourself with an experienced and reputable hard-money lender or get a local lawyer to coach you.

First, I don't know how it is possible to lose a judgment in a foreclosure. A money judgment should be placed on the public record by recording an abstract of judgment in each county where the judgment debtor may have property. Then, there are multiple paths to enforcement, including foreclosure on real property, garnishment of wages, and on and on. So, you can't lose your judgment, really; what may have happened is that the "bank" had a lien that was senior to your judgment in time of recording as to one asset - but your judgment is still there; it simply fell into second position behind a senior secured creditor as to that particular property.

Your relationship with a collections company with respect to your judgment is governed by the law of contracts. Basically, this means that your rights to proceeds from collection efforts of the judgment are determined by the deal you made with the bill collector. The bill collector is entitled to whatever your contract with them says, not more, not less.