Legal Question in Real Estate Law in Georgia

what are the rights of a second lienholder for a residential property

I bought house back in 1997, (a real money pit, victorian style), couldn't afford upkeep or mortgage. Voluntary repossession to the first lienholder. Second lienholder, (previous owner of the house instigated a secured loan to meet his price and wife wanted house)brought up creative financing to seal the deal since I was only approved for a certain amount. Well, after forclosure the previous owner came after me for the money. My question is what is the second lienholders rights concerning this secured loan. My understanding was that he was to file a lien on the property and the first lienholder had to clear all liens to get a clear title, or pay him off. Please help, he got a judgement against me when I moved to Alaska and he is after me.


Asked on 2/27/04, 10:51 pm

1 Answer from Attorneys
Charles W. Field Charles W. Field, Attorney at Law

Re: what are the rights of a second lienholder for a residential property

Sorry, but you are on the hook. Even though the second mortgage may have been wiped out by the foreclosure of the first, you are still liable on the note for the second. In addition, since they have a judgment against you, if an appeal was not timely filed, the judgment is final and they are entitled to collect from you. My advice: try to negotiate a reduced amount and a pay-out period. My second bit of advice: consult with a local attorney regarding your rights.

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Answered on 2/28/04, 6:07 pm


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