Legal Question in Real Estate Law in New Hampshire
Liens and Foreclosure
My friend has a judgment against him for a non-home-related court case, and to secure that judgment, a lien was attached to his home. He can no longer afford his home, and may possibly go into foreclosure. He has a mortgage and a HELOC on the home. If his home goes into foreclosure, what will happen to the lien from his judgment?
1 Answer from Attorneys
Re: Liens and Foreclosure
The lien will be discharged but hot the judgment or the debt. Judgment's are collectable for 10 years. this means the Mortgage Company that is foreclosing on the loan will take title. If someone bids more than the mortgage and the HELOC, then the balance may be paid to the lienholder or your friend depending upon if there is a homestead on the property.
If your friend has equity in his home he can file a chpt 13 bankruptcy and try to preserve that value by selling the home. He will need to have filed a homestead with the registry of deeds prior to filing the bankruptcy.
I am not a bankruptcy attorney, so your friend would have to contact one.
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