Legal Question in Credit and Debt Law in New Jersey
Would it be worth the while of a creditor (of unsecured debt)
but with a judgment for $40,000, to foreclose on a home with
no other liens and worth approx $400,000 -- instead of
negogiating an immediate settlement of 50% at $20,000 obtained by taking an equity loan on the home?
Asked on 6/17/10, 10:41 pm
1 Answer from Attorneys
John Corbett
Corbett Law Firm LLC
There is no foreclosure right for a judgment creditor whose only security is a judgment lien. If you are referring to a judgment that is collectable from the real property of the debtor as stated in the writ of execution, such an deal makes sense only if there is no more than $20,000 in equity in the property after the costs of a sheriff's sale and the debtor has no other assets or income. � See also: http://info.corbettlaw.net/lawguru.htm
Answered on 6/18/10, 7:09 am
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