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dfp · Apr 3, 2007, 04:43 PM

We had won a judgment for $12,000 and had filled a les pendens against the persons property.

Since the filling of the les pendens the house was sold and the title company did not notice the les pendens on the property. The title insurance company is refusing our claim saying there was no profit to the seller ( not no equity in the house they paid at least $60,000 of bills out of the closing and the home owner exemption in Colorado is only $45,000)

What is our next step to convert this les pendens to a lien? The new home owners have about $100,000 in equity. I feel sorry for them cause this was missed, but if I get it converted to a lien and start foreclosing then the title insurance should pay it. We had spent $80K already to get this judgment and a fraudulent mechanic lien lifted from our property. So we can not really afford an attorney any more.

I know from the research that I have done that I can convert the les pendens to a lien even though the property has sold. But I can not find any samples of pleadings to the court to do so.

Thanks

Cvillecpm · Apr 3, 2007, 05:50 PM

With a judgement, you don't file a les pendens since you already have a right to lien the property. You should have recorded an abstract of judgement against the judgement debtor.

You probably can't foreclose on a property * few states allow this since it would deprive someone of their home... you need to follow up with an order of examination and find other assets easier to attach.

Fr_Chuck · Apr 3, 2007, 06:24 PM

Also who cares if the title insurance is refusing, sue them if they will not honor the terms of the insurance??

dfp · Apr 3, 2007, 08:04 PM

I would have to go against the new home owner and they would then have to sue the Title Insurance Company I have no contract with the Title Insurance Company.

I realise I should have had a lien, it is one of the many things that the attorney I was using did wrong.

Colorado does allow for foreclosure on the home. The home owner gets $45,000 of equity protected. And it looks like they have at least twice that. I am thinking of telling the new home owner that I am going to proceed against them and let them resolve it with the title company.

I just want to make sure that I proceed correctly to get this switch to a lien. From what I can find out, I should be able to get this switch over to a lien. And I don't have to even notify the new home owner. It is part of my existing case against the old home owner.

Cvillecpm · Apr 4, 2007, 11:35 AM

You have no cause of action against the NEW homeowner... you should have recorded your judgement to place a LIEN against the old homeowner/judgement debtor.

It appears your judgement was not properly recorded. Sue the attorney that failed to properly record your judgement.

ScottGem · Apr 4, 2007, 11:45 AM

I'm not sure about this, but I think you can enforce the lien against the new homeowner. When you try to do that, they will have to turn around and sue their Title company for ensuring they had clear title to the property.

I don't think you can foreclose, since your interest in the property would be secondary to the mortgage holder.

So the bottom line is the Title company gets sued and needs to pay for mssing the encumbrance against the property.