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How would I get paid for my mortgage lien on a property?

There is a property in NJ which I lent $45,000 as a mortgage. There are three lien holders on this property. The property was sold to the 1st lien holder. The 1st lien holder took over the property and he is the owner. I'm the 3rd lien holder. What happens to my payments?

1 reply

Jan 16, 2020

Generally, unless a property is foreclosed, the transfer of the property shouldn't generally affect junior liens on it. So, even if the property is sold to one of the parties who holds a lien, others holding liens on the property will generally still have their interest in the property protected. And, if payments were being made on the lien previously, those payments should probably continue even after the sale. With the above being said, I'll admit I'm no expert on mortgage liens - mechanics liens are more my speed. Plus, the terms of the agreement which gave rise to the lien may dictate how the lien should carry over with a new owner. So, in order to get ultimate clarity here, it'd be wise to seek out a New Jersey real estate lawyer. They'll be able to review the relevant documentation and advise on how to proceed with getting paid.

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