Can a Common Law Lien Prevent Foreclosure?
Full Question:
What is a Common Law Lien for Prevention of Foreclosure? How is it filed, or the procedure required to file this lien?
08/16/2010 |
Category: Real Property ยป Foreclosure |
State: Alabama |
#22923
Answer:
This sounds like a marketing scam. By definition, a common law lien isn't filed, it is based on principles developed through case law.
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.
Please see the information at the following link for further discussion:
http://openjurist.org/290/f3d/1166/united-states-v-l-weaver
