If I lost my house to foreclosure and a company had a lien on it, should the company get paid by the bank when my home sold?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I lost my house to foreclosure and a company had a lien on it, should the company get paid by the bank when my home sold?

I had a lien put on my home 4 years ago. I lost the house to foreclosure. Once the house people would not work with me to let me keep the house I surrendered it. I thought beings the other company had a lien on my house they would get there money from the sale of the house beings they have a lien on the house and the bank would have to pay them before they could sell the house. Should the loan people be able to sue me or should they have gotten the money from the bank when they sold the house beings there was a lien on the home?

Asked on December 21, 2011 under Real Estate Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A mortgage, especially a purchase money mortgage (i.e. a mortgage you used to buy the home) typically has priority over a lien. That means that when the house is foreclosed upon, then sold, first some of the sale proceeds are used to pay off administrative costs of the sale; then the proceeds are used to pay off the mortgage; and only if the mortgage is paid in full will any remaining money be applied to the lien. The bank does not need to pay the lien in order to sell; instead the lien may be paid off after the bank sells, but only if the house sells for enough. If it does not, the lien holder may still seek the money from you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption