Liens before divorce


#1

My research at the recorder’s office shows that the husband bought the house from ex-wife through a court divorce case for $60000 in 1998 with a bank loan of $100000. In 2002, he refinanced $150000 and paid off the $100000. He opened a line of credit in 2004 for $30000.
The lender of the $150k is foreclosing.
My questions: 1. Is it fairly safe to assume the $150k in 2002 is the first? Do I need to worry about any liens prior to the divorce?
2. At the trustee’s sale, the 30k line of credit will be wiped out, correct?


#2

Based on the facts as you recite them, the $150k loan will be in first position following a full value transfer to the ex-husband. Assuming that is the case, there should be no prior liens that were not paid off and subsequent liens, including the 30k line of credit, would be junior and wiped out by the foreclosure sale.


#3

how can i tell if it’s a “full value transfer” ? i can see from the recording that, during the divorce, the wife signed a Bargin and Sale Deed over to the husband. The doc says: The true consideration for this converyance is $60000. AS PER THE TERMS OF THE JUDGMENT OF DISSOLUTION OF MARRIAGE CASE NO. ####. It appears the husband refinanced the house and paid off the wife. i guess it’s pretty save to assume the refinance paid off everything owed on the house before the divorce. there’s no subordination lien on the records. Again, it boils down to how do i know it was a full value transfer?


#4

You hit on the important point. See if you can confirm that all open liens were paid off by the refinance, which I agree is likely. You can do that by visiting the county recorders office and searching for any liens that were open immediately before the refinance and then check for reconveyances closing those liens following the refinance.