In ny if a debtor gets a judgment against them a lien is automaticaly placed on their residence.New york also has a 50,000 homestead exemption for each person listed on the mortgage.So if a debtor has a house that is worth 90,000 but has a 60,000 mortgage and a 13,000 second mortgage is the rest of the equity on this property exempt?So that if the debtor sells the home for 90,000 he gets to keep the 17,000 left over minus selling fees?Thanks
Technically yes, but you may run into snags at closing the sale if the title company insists the judgment lien be paid/released. FYI: In the situation you describe, a consumer should be able to discharge the lien/strip the lien through Bankruptcy. Also note: Judgment liens on real estate are only enforceable for the first 10 yrs of entry. The Judgment can be renewed for an additional 10 yrs. but (per my understanding) the judgment lien becomes unenforceable against the property for the remaining 10yrs.
