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 can be created by filing a security interest in property, like when a mortgage is recorded with the county recorder's office. The priority of liens is usually determined by the recording date. Lenders typically have priority over later filed liens (junior creditors), meaning junior creditors can only collect from any remaining proceeds after the mortgage holders are paid. If the property is sold in foreclosure and no funds are left for junior creditors, they may pursue other assets of the judgment debtor.
A judgment lien is established when a court grants a creditor an interest in the debtor's property due to a court judgment. This can occur in cases of unpaid debts, including promissory notes. If you obtain a monetary judgment, you become a "judgment creditor," while your ex-spouse becomes a "judgment debtor." If the judgment remains unpaid, you can request the court to place a lien on the debtor's property to secure payment. After placing a lien, you may sell 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.