When dealing with collections there are many ways to proceed, specifically when dealing with liens on property. Although this is meant to be informative, you should discuss these issues with an experienced business collections attorney Leaving aside for a moment the first mortgage and ability to foreclose on the property through trustee sale, we will discuss judicial foreclosure.
Foreclosure seeks court authority to foreclose the lien on the owner’s property. This allows the property to be sold at Sheriff’s sale. There may be liens superior or junior to your lien, and you should consult with an attorney when looking into this. The lien will be satisfied through a Sheriff’s sale, if there is enough equity in the owner’s property. Please be aware that there are nuances to foreclosure, including the ability of the first mortgage to foreclose in 90 days by trustee’s sale, a fairly short period of time.
The other collection procedure seeks a judgment against the owner personally. This means that the judgment appears on the owner’s credit report and the owner must personally pay the required amount to remove. It also permits you, with a judgment, to garnish wages, garnish bank accounts if they can be located, and require the judgment debtor to appear for a deposition concerning assets. This track, through Justice Court, is generally less expensive than foreclosure. With both foreclosure and personal judgments, we can enter into payment agreements at any time with an debt if it is in the best interests of the you. The goal is to get paid.