Thanks to everyone for a quick response.
I was told today, by an attorney, that if a judgement is placed against me by a credit card company (I have $80k in unsecured debt) that not only can they place a lien on my house, but they can foreclose. How is that possible?

You got bad info. Yes, they can put a lien, but they cannot foreclose. Only the mortgage holder can foreclose.

If he insists that they can, have him show you precedence for it.

I would definitely get a different attorney.

If he shows you precedence, I'll eat my hat!

Many thanks for a quick answer. That was a relief. How quickly would a creditor go after bank accounts after a judgement? I guess they cannot get to my proceeds of my house unless I refi or sell right? I would think they would want money before then. I am prepared to keep no money in any account, if that is the case. Please know I am liquidating assets to pay everyone, but the assets take time to sell. In which case, the creditors proceedings continue because nothing really matters to them unless I say I can write them a check, right?

How quickly would a creditor go after bank accounts after a judgement?

If they know of a bank account, then count on immediately.


they cannot get to my proceeds of my house unless I refi or sell right?

Correct.


...the creditors proceedings continue because nothing really matters to them unless I say I can write them a check, right?

Yep. It's typical that if you have assets and income, they'll go for the judgment.

Rick this is what I also always thought, but I am going though our State Real Estate Study to take my Realtors test. And in general in some states yes not only can they place a lien on the home, but if they don't push for the sale in a certain number of years they will lose the right to keep the lien.

So ( although our book did not tell us which states) it did state that in some states, not only can they place liens but are required to start foreclosure to protect their interest.

And the reason many don't is that the 1st and 2nd mortgage always gets paid first and normally the home will not sell for enough to give the other lenders any money. And they have to pay for the court action to foreclose.

Real Estate Fundamentals, by Wade Gaddy Jr and Robert E Hart, Sixth Edition
This is the text for the Rules of Real Estate test not the state specific test

Rick's answer is great.

I just wish to add that the only people who can foreclose on your house are the:

a) mortgage company (which rick stated)
And
b) the government (if you fail to pay your property taxes)

Many thanks to everyone. I just spoke to a bankruptcy attorney, who also handles debt negotiation. She stated that if a judgement is granted, the creditor will go for the lien and a payment plan. If they cannot get to their money quickly, they will start proceedings for bank accounts, income, etc.. If they still cannot get their money, they will drag you in front of a judge, force you to supply bank statements, tax records, etc. in order to determine what you have they can attach to. She stated that the creditor will not sit back and HOPE you sell or refi. She said after the burden of exhausting all options is done, they can force the sale to get their money. This is of course if you have equity after the lender is paid. This just seems nuts to me.. unsecured debt becomes secured and they take your house? Can anyone validate? I am not planning to get anywhere near this deep, but I certainly like to understand my rights.

twdw1758, where do you live?

WA State

Have you ever considered credit counselling? They can help you set up a payment plan. This will make things look better for you and show that you are serious about clearing up your credit problems. Good luck.

The Homestead Exemption in Washington state is $40,000 according to my Google search. Apparently the new Fed BK law has passed a limit of $125K, regardless of state law. Some states are less than $10K. That is the amount of equity protected from creditors. You are in dire straits. My advice would be to rely on the advice of your BK attorney. Best of luck; things always get better.