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The bank foreclosed on the owner

TexasBankruptcyForeclosure

When will the bank pay our lien?

3 replies

Jul 17, 2020

Hello!

It depends on how much the property owner owed to the bank and how much the bank is able to get for the property on sale.

If the bank receives less on the sale of the property than what the debtor owed, the junior lienholders (you) will be wiped out and receive nothing. If the bank receives more than what the debtor owed, you will receive up to your lien but may not receive the full value.

It may be a good idea to consider consulting a bankruptcy attorney or research what happened to the property owner to get a better idea of whether or not you will get paid.

E. Aaron Cartwright III
214-789-1354
Aaron@EACLawyer.com

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Jul 17, 2020
So I will have to wait until the property is sold to get paid? The property appraised for twice what’s owed on it?
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Jul 18, 2020

Yes, unfortunately, as very few liens are more senior than a mortgage lien placed by the bank.

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