losing house for judgements

Submitted by patyann958 on Tue, 09/08/2009 - 21:34
Forums

i live in pa, have several judgements against me which at this time i have no money to pay back. can the people who hold the judgements take my house? Can they come in and take my furniture and personal belongings?

MDenton (not verified)

Creditors can only repossess items which were used to "secure" the debt. Your mortgage company can foreclose on your house, Sears cannot. Unsecured debt, like credit cards, can only garnish your access to cash, like your paycheck or a bank account.

Federal law restricts the amount of money which can be garnished from a paycheck. If multiple creditors petition your employer for more than the legal amount, your employer will place them each in queue and pay out each one in the order they filed for as many weeks as it take to satisfy all garnishments.

Bank accounts have no such protection. Once you deposit your paycheck, the entire balance is subject to garnishment. If you have direct deposit, you should cancel it immediately. Deal in cash until you are back in a stable situation.

(side note: The fine print on your Sears cards actually states that everything you purchase with their card counts as a security against the debt. This works because you had to buy it at their store, so they know exactly what was purchased. They could come back after your washer or dryer.)

Wed, 09/09/2009 - 00:57 Permalink

They can actually have a sheriffs sale to recover their money, if you have items of value, they can go through the local magistrate and have a hearing to have the paperwork drawn up to post the sheriffs sale. You should contact your local sheriffs office and find out how these matters are handled. There is no harm in calling them to see what the result of this could possibly be.

Wed, 09/09/2009 - 01:25 Permalink
Sarah_123 (not verified)

Hi patyann,

They can take your house if you have a secured debt. In case your debt is unsecured, then the judgment holders cannot foreclose your house. If you have failed to clear off the debts of your credit card, then do not panic because your house cannot be foreclosed. However, if your debt is a secured one then they can have an auction of the house as well as the furniture inside. I agree with goodnatured that you can contact the local sheriff’s office to find out more o the auction and if there is any way out.

All the Best:-)
Sarah

Wed, 09/09/2009 - 05:11 Permalink
Anonymous (not verified)

Patyann,

I understand from your post that you have a number of judgments against you and are threatened because of the foreclosure of your home by your creditors. Well, if your debt is secured then your property is subjected to foreclosure. Even if your debt is unsecured the creditors can place a lien on your property. If they place a lien on your property, then I am afraid they have the right to take away your home and furniture from you. You must contact the office of the sheriff to figure out a proper method of saving your property. But even then, your credit score will suffer.

Keep Posting!!
Deborah Richards

Wed, 09/09/2009 - 06:17 Permalink

You are right Deborah, if the loans are against the house, sorry did not think of that. Is this a mortgage that you have defaulted on? If so then you should be concerned that taking the property is certainly an option that they have. If not then you are probably looking at a sheriffs sale.

Wed, 09/09/2009 - 10:23 Permalink

Hi patyann

i live in pa, have several judgements against me which at this time i have no money to pay back. can the people who hold the judgements take my house? Can they come in and take my furniture and personal belongings?

If the loan is against your home, i.e. if it is a mortgage loan and you have defaulted, there is every chance that your mortgage lender might foreclose your house. You need to tel us what kind of loan you are speaking about here. Otherwise, in case a creditor has got a judgment against you, it is more likely that your bank account will be garnished or your wage will be garnished rather than a foreclosure.

Are you currently unemployed? Why are you not able to pay off the debt? I would suggest that you speak with your lender and explain your situation.

Is your credit score worthy of getting another loan? If yes, and if you can afford it, then you could calculate your total debts and get a loan on the total amount. With this money you may pay off the debts that you have. Also look for a loan that has a low rate of interest. This is how you can consolidate your own debt. Try and speak with your lender (s) and get in to a settlement with them. It is better to be in their good books rather than shying away. This will not just lessen your future prospects of getting a loan but also hit your credit report badly.

Wed, 09/09/2009 - 11:01 Permalink
wetz501 (not verified)

Here's my situation. About 5 years ago I bought a piece of land in upstate Pa (paid cash) Shortly thereafter I was injured and I am on SSD and workmans comp and have been unable to pay the association fees. I recently received a notice that a judgement was going to be placed against me in the amount of $11,000. The notice also said that they were going to go after my condo where I live in Phila, my car, my bank accounts and my belongings. Can they take my house and other things I listed? They can have the land in thier developement but they didn't mentoin that in the notice

Sat, 03/20/2010 - 19:33 Permalink

You are right to be wary! At this point you must outsmart the system.

My understanding is that all judgments attach to real property. You must satisfy the judgment prior to transferring title to the property. You will not be able to sell your condo, etc. without settling the outstanding judgment.

The association fees have nothing to do with your land. The association can place a judgment against your condo for the unpaid fees, however, I don't believe that they can pursue a foreclosure, nor a sheriff's sale. If the association fees are part of your mortgage, then the association can foreclose.

If the association were able to take your condo, then they would have instituted a foreclosure proceeding, and not pursued a judgment.

What to do -
1 Talk to a legal aide attorney about the situation.
2 If the judgment has not yet been put against the property, transfer any real property into separate trusts, preferably out of PA, so that any court action will cost the association more. Consult any trust attorney, or asset protection attorney for this paperwork and procedure.
3 Talk to the condo association about the situation and try to set up a payment.
4 Sell your land or any other assets to create cash.
5 Set up a business to create income. For instance, anyone can paint. If you can't paint, you can get the jobs and hire students to do the painting. Set up the business in a trusted person's name, including checking account, and get a gift when needed.

Good luck

Sun, 03/21/2010 - 23:59 Permalink

My mother had a similar situations, a credit card company filed a judgment and tried to put a lien against the property, they had to appraise the property. They discovered that my mom owed the mortgage company first before they could pay, and if she was forced to sell the house, nothing would go to the credit card company so they had to back of in her case.

Mon, 03/22/2010 - 05:33 Permalink
Martha (not verified)

I borrowed from a bank and I became unable to make my paymwents, They are placing a judgement against me and when I called the persion told me that since I just draw social security ionly they could do nothing but I could not sell my house if I should want to. I did not give it when I borrowed the money. What can I do?

Thu, 04/15/2010 - 00:20 Permalink

Hi Martha,

Can you tell me whether or not you want to sell your house to pay off your debt? However, this is true that social security cannot be garnished by anybody else other than the government. If you owe anything to the government, then the government can garnish your social security.

Thanks,

Aaron

Thu, 04/15/2010 - 12:35 Permalink
L.morocco (not verified)

If you own a home jointly with someone and one of the parties has a judgment(unsecured debt) against them, and you sell the house, what happens...does the judgment have to get paid with the sell of the house? Is the person that does NOT have judgment left alone and get the half of the money from the sell

Thu, 04/15/2010 - 18:42 Permalink

Hi,

If there is any mortgage against this jointly owned home, then you people can sell it and divide the money according to the share in interest. The creditor or collection agency won't come after you for the money.

Thanks,

Aaron

Fri, 04/16/2010 - 12:00 Permalink
genesoult1 (not verified)

my mortgage company put a judgement against my house and in the state of pennsylvania they had 5 years to act on it and they never did. now they want to put another judgement against me. can they do that. i am on social security disabality

Sun, 08/01/2010 - 23:14 Permalink

Hi genesoult,

As far as I know, a judgment can be renewed before it's expiry. Now, if it has expired, they can file a new lawsuit against you if the debt has still not been paid.

Thanks,

Aaron

Mon, 08/02/2010 - 11:52 Permalink
Sandyk (not verified)

Does a judgement against me for an unsecured debt keep me from selling or transferring title to my house?

Tue, 09/21/2010 - 17:35 Permalink
sandyk (not verified)

Revise: If I have a judgement against me for unsecured debt and I sell my house, does it have to be paid before the sale can close and title is transferred to buyer?

Tue, 09/21/2010 - 17:38 Permalink

Hi sandyk,

If the creditor has put a lien against your house then you won't be able to sell at all. Can you provide more details on this debt and the judgment.

Thanks,

Aaron

Wed, 09/22/2010 - 11:39 Permalink
toby (not verified)

If your real property is paid for, and a landlord gets a judgement against for any back rent owed can you give your property away?

Thu, 09/30/2010 - 15:44 Permalink
Your Friendly … (not verified)

In pennsylvania you can put a lien on the person's home in the amount of the judgement, preventing the person from selling, refinancing, etc. Statue on those is 5 years, however can be renewed every 5.

Fri, 10/01/2010 - 17:15 Permalink
Denise (not verified)

I owned my property since 2006. My father was the prior owner before 2006. A creditor put a judgement against the property in 2009. Will I be responsible for the judgement against my father.

Thu, 12/30/2010 - 22:39 Permalink
L. Marie (not verified)

My husband and I are buying a home. He has to judgements against him for not paying bail bonds that arent his. We have been working with a credit consultant to remove them, but she isnt working fast enough. As of right now no mortage company wants to finance us unless we pay them off. My credit score is decent and I qualify for my VA loan by myself, but since texas is a community property state he has to be on the title with me. No one seems to be able to help us so far, does anyone has any other advice then what I already know?? I would really really appreciate!!

Tue, 01/11/2011 - 14:51 Permalink
cavell (not verified)

If a non-profit org buys property in a sheriffs sale, is the non-profit responsible for any judgements against the property?

Tue, 04/26/2011 - 16:23 Permalink
michele Kelen (not verified)

Last year my sister died and her children were left to me. We had to hire an attorney to go through proceedings we paid him. After court was over he must of done additional work and we received a new bill for 5500.00. Unfortunately my husband lost his job. We received a judgment in the mail. I live in PA. What can they take can they take our home or our cars. I have a lien on one but not both. The lawyer sent a letter saying We plan to have the sheriff or constable levy or seize as much of your property as necessary to satisfy this obligation. What can the take? Are we going to be homeless

Sat, 03/02/2013 - 21:20 Permalink
Lauren (not verified)

Breath. In PA the laws are on the side of the debtor. They cannot force you out of your home. All they can do is put a lien against it. Have you actually been sued in court and had a judgement issued by a judge?

Tue, 08/06/2013 - 01:51 Permalink
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