Posted by Lachin Hatemi on February 05, 2007 at 22:40:41:
Hi,
Here is the outlay
1996- Mrs. X has a traffic accident and almost died.
1997- A hospital bill for $76,000 goes to collections
1998- Lawyer for the hospital gets a judgement against her
1998- Judgement is recorded as against all real estate she has in county clerk’s office (even if she does NOT own real estate)
2004-She purchases her first home in the same county (title company did not catch the previous lien)
2007-She is foreclosure.
Does the medical lien has the first position on the house since it was there first? I am confused. I can buy the medical lien for 20 cents on a dollar and when it sells a the auction they need to pay me first. Is there anything that I do not see?
This reminds me a case-study in a real estate finance textbook I read long time ago. Can this mistake benefit me?