Ask Me Help Desk - Mom's property held jointly by 3 surviving sons

Mom's property held jointly by 3 surviving sons

The ex-wife of one of my brothers has placed a judgement lien on the property and we are trying to settle with her.
She won't get the entire amount owed to her by receiving one third of the proceeds after paying off first mortgage.

How do my one brother and I assure that the woman releases the lien on the property so that the buyer can receive and free and clear title?

Hello road:

If you had time, this COULD be cleared up. But, you don't. I don't know what would be cheaper - hire a lawyer or pay her off. Course, I don't know how much money we're talking about here.

excon

What State? I'm surprised that the lien isn't paid first, taken off the "top" of the proceeds, and then the balance split three ways.

I thought you inherited property and the liens - obviously liens paid first, then the property distributed.

Where?

Quote:

Originally Posted by road_runner2

...
How do my one brother and I assure that the woman releases the lien on the property so that the buyer can receive and free and clear title?

Agree that the payment to her, and the release of lien be both deposited in escrow. The escrow instructions would provide that when both are received, they each are to be delivered, and not before.

An escrow can be established through an attorney or the title company which is handling the sale to the buyer.

Quote:

Originally Posted by AK lawyer

Agree that the payment to her, and the release of lien be both deposited in escrow. The escrow instructions would provide that when both are received, they each are to be delivered, and not before.

An escrow can be established through an attorney or the title company which is handling the sale to the buyer.

I'm reading that her third won't be enough to cover the lien. That's why I questioned why the lien isn't paid first (and held in escrow) and then the balance split among the three survivors.

Or am I misreading this?

If this is just a Mexican standoff (is that not PC?), then you meet at the deeds office and fork over a cashier's check with one hand while she releases the lien with the other. I assume that she has no mortgage to pay off by herself. If you are in distant states, I would arrange a bankwire to her bank. You could have her call you from the deed office or something, making the standoff a little more risky but it might be the best you can do without a lawyer, or a title company, which would be cheaper. They crowd their offices around the courthouse where the deeds are filed and literally run back and forth.

Again, am I the only one reading that the intention is to "split" the proceeds three ways and then pay the ex-wife out of her share of the proceeds (which are insufficient to cover the lien)?

Quote:

Originally Posted by JudyKayTee

Again, am I the only one reading that the intention is to "split" the proceeds three ways and then pay the ex-wife out of her share of the proceeds (which are insufficient to cover the lien)?

Hello Judy:

Nope.

That's why I said paying her off MIGHT be cheaper than hiring a lawyer to negotiate.. There IS a closing date looming. Again, without knowing HOW much the lien is for and how much the proceeds will be, we're left to guess.

We don't provide very good legal advice when we have to GUESS.

excon

Quote:

Originally Posted by excon

Hello Judy:

Nope.

That's why I said paying her off MIGHT be cheaper than hiring a lawyer to negotiate.. There IS a closing date looming. Again, without knowing HOW much the lien is for and how much the proceeds will be, we're left to guess.

We don't provide very good legal advice when we have to GUESS.

excon

I realize that the 1/3 interest in the property is worth less than the amount of the lien. But if push came to shove, and the ex wife were to sell the property to enforce here lien, I suspect that she would have to pay the other two sibs their shares of the proceeds. I am assuming that the ex recognized this. So, and at any rate, it appears that all parties have agreed that this is how it is going to work.

Apparently they don't trust her at her word. Strictly speaking, if the lien is paid the ex can be taken to court and forced to release the lien.
So an escrow would be the preferred way to handle it. The alternatives

(Picture ex sitting a a table with the release in her left hand and her right hand reaching out to receive the money. As she grasps the cash OP pulls the release from her left hand. She hangs on tighter and won't release the release. It could get tricky. :) ),
are not as neat.

Additional note:
A release of the lien will only constitute partial satisfaction of the underlying judgment. The ex can continue to look to other property, just not this property (once the lien is released).

Thanks very much. The property is in NM and was transferred to us via a TODD, so it was never technically part of the estate. Sounds like escrow is the best way to go. She is out of state so it is unlikely she will be sitting at the closing table. My one bro and I are covering all the costs and we have been able to negotitate at least the recovery of troubled bro's costs from the ex.

I'd like to see her try and force a sale. She has even threatened to go for more than she would be entitled to, i.e. the other brothers share.

We're not talking big bucks here. Ex claims bro owes her $100k probably more like $50k but she will only end up getting $20k-$25k from the house.

Quote:

Originally Posted by road_runner2

We're not talking big bucks here. Ex claims bro owes her $100k probably more like $50k but she will only end up getting $20k-$25k from the house.

$20-25 thousand is big bucks the way I look at it. ;)

Definitely worth a few hundred bucks to get a lawyer and do it right.

Hey, I mentioned the standoff first.. and what about paying a title company like I suggested? Cheaper and closer and that's one of the things they do.