Child support lien in a foreclosure, attached to house or follow obligor?
I live in Florida. A few years ago, a child support lien was placed on my ex-husband's home in Ohio for $20K (by the state due to my receiving public assistance). He shares the deed of that house with his second wife whom he is in the process of divorcing. The first mortgage is solely in her name ($75K), the second mortgage (HELOC) is in both names ($11K). No other liens/tax delinquencies exist. Total current obligations = $106K. Current short sale offer standing is $40K but cannot be actioned due to child support lien. His second wife filed for bankruptcy CH 7 in her current resident state of MI and has relinquished any and all claim to the home in their divorce settlement.
I have been advised that the child support takes precedence and the bank cannot foreclose, nor can the home be sold without first satisfying the child support lien. Further, I have been advised that the lien is "attached" to the house rather than the ex and will have to be paid by the 1st mortgage bank unless they choose to release the mortgage altogether, in which case I have no idea what would happen.
I was actually considering waiving the portion of back child support that is not claimed by the state to the extent that I can because of my role in the circumstances surrounding this situation. The ex has no property in his name nor income and if the lien follows him there would be no chance nor desire on my part to collect. Does anyone know if (1.) the lien is actually attached to the house? and (2.) may actually be paid by the bank?
Short sale offer of $40K was a miracle to begin with (by local neighborhood redevelopment nonprofit). To say house is even valued at $40K at this point is a long shot.
A government loan would normally have to be satisfied prior to a mortgage or other lien against a property. That include such things as tax, child support liens.
The government is not asking the bank to pay the child support lien,they are saying that if the property is sold through any means, that the child support lien would take preference and paid first, and anything left could go toward paying any other lien against the property, with the first mortgage being the next in line.
In the event a sale of the property does not bring sufficient amount to pay the child support lien then any amount left would still be pursued by the county in which the child support is owed. By collecting a portion of the child support does not prevent the government from seeking the rest of the child support payment.
It matters not that you would want to waive any portion of the child support lien that you would get. These are funds paid on your exes behalf that he still owe on the unpaid balance of the child support.
I hope this has been of some benefit to you, good luck.
While the short sale will probably not go through, the lender certainly can foreclose on the property. The child-support lien is behind the 1st Trust Deed of the lender and that lien will be wiped-out in the foreclosure.by Glenn S - 4 years ago
You have been advised correctly
There are many kinds of liens and they all follow the property, not the person. Lien priority is different matter.
By law, real property can't transfer ownership until all liens are cleared from title. A mortgage is a lien. When their are multiple liens on a piece of property, lien order is all that matters (who gets paid off first). Government liens always assumes the first position. Since the child support lien was not placed by you, but by the state, the child support lien must be fulfilled before the lender can claim ownership.
As to whether or not the lender will pay the child support lien, I have no idea. But recovering $20k without adding the expenses of foreclosure may be in their best interest at this point (depending upon likely resale values).
Your pity upon your ex to waive part of the back support is rare, but actually it may simply be out of your control at this point since liens aren't easily changed.
The states do not normally waive child support that is owed to them. That's their money, you're out the loop unless after they get paid there's something left for your child. Until you get off the dole, money will go to paying them back because they have been taking care of your kids. Your ex is jacked unless the state cut him some slack and just lock him up.
The second wife was smart to cut her loses and leave him dangling.
Source(s)by LucyGoosey - 4 years ago
A child support lien would have to be paid first out of the remaining proceeds after the mortgage was paid off! If there are not enough funds left to cover the lien the state will still pursue your ex for the balance of the back support. If the state paid you for child assistance they may have a separate lien in addition to any money you think you have coming. You could not waive the state's portion of the lien.by Bill - 4 years ago
I know this from first hand experience. The lien is not paid in the foreclosure, only a sale. Your ex still owes the child support and the lien is attached to him. Run a credit check on him, you will see it there. They will get the money out of his estate when he passes if they have to, or just arrest him, AZ arrested lots of dead beats this year.
It would be great for children if the banks did pay for the dead beats obligations, but in real life this does not happen.