Irony, Irony, Irony

[Nikki]

Technically, this doesn't belong here. However ...

Investment at risk

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I sold my house a little over a year ago. I loaned the buyers $15,000 to help with the purchase and created a mortgage on the property to protect my investment. My mortgage is in 3rd place behind the primary lenders 1st and 2nd.

I just discovered that there has been a lis pendens filed and I was listed as a defendant in the case.

My understanding is that if the foreclosure goes through, most likely I will lose my investment. Is there anything I can do to either protect my investment or somehow slow down the foreclosure process?

It has been suggested that I file my own lis pendens. Would the foreclosure negate my lis pendens and thus void my claim?

It has also been suggested that I appoint the attorney for the Plaintiff as my fiduciary and then add them as a co-defendant in the case. From the explanation I was given this would prohibit them from representing the Plaintiff in the case.

I would like to see the buyer recover and do well, but now my investment is at stake and need to protect myself. $15,000 is a lot of milk and cookies for me.

http://www.suijuris.net/forum/asset-pro ... -risk.html

I just wonder what the SuiJuris responses would have been had Fossil Rock been the borrower. I strongly suspect they have two sets of rules, depending on the relative position of the shoe.

[notorial dissent]

Actually the sympathetic response was about the same as it would have been otherwise, and about as useful, file a lis pendens, etc.

I do feel sorry for this guy, he tried to do something nice, and is going to get screwed, that is all there is to it. He has a 3rd mortgage, prop values have dropped, and I suspect the buyer is up to his eyebrows in debt, and when they sell the house at foreclosure, the 1st will get most if not all of the proceeds, leaving 2 and 3 out in the cold. The best he can hope for is that he can use the loss as a tax write off.

You are right though, there is a general dichotomy split between how to avoid paying a debt, and how to "magically" create one against someone you feel has done you wrong, both of which having about the same grounding in reality-which is to say NONE.