Full question:
In California, do I have any recourse if an ex-spouse decides to renege on a Promissory Note that was issued for unpaid community interest and is secured by the property we once owned jointly? Specifically, I'm in a 3rd position behind two mortgages. Does the fact that my Promissory Note was approved by a judge (unlike the two mortgages in front of me) allow me to seek a judgment to go after other possible sources of cash such as a 401K, IRA or wages?
- Category: Debts and Credit
- Subcategory: Promissory Notes
- Date:
- State: California
Answer:
A lien may be created by filing a security interest in the property, such as when a mortgage is recorded in the county recorder's office. Priority of liens is generally determined by the date of recording. Often, the lender will have priority over any later filed liens (junior creditors), and the liens junior creditors hold will only be able to be collected out of any remaining proceeds after the mortgage holder is paid. If the property securing the mortgage is sold in foreclosure and no proceeds remain to pay junior creditors, it is possible the junior creditors could attach other assets of a judgment debtor.
A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including promissory notes, credit cards, bank loans, or deficiency judgments on repossessed vehicles. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." If the judgment remains unpaid, the judgment debtor may request that the court place a lien on the judgment debtor's property to secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
