Collateral Mortgage to Judgement

[danielwik]

Could someone please explain how a judgment and a collateral mortgage work? The scenario is this a second collateral mortgage is placed on real property as security for leased equipment since the equipment is not fixed and the leasing company is afraid of someone taking the equipment and disappearing; they want additional security if the equipment disappears not this is in addition the all the UCC-1 on the equipment. Default occurs and without an order (or permission) finance company comes and takes equipment (landlord gives them access to the store). Finance company sells the equipment for 5.8% of what the equipment was purchased for by them 13 months before. (Not market value at all). Finance company sues for the other 94.2% plus legal costs. I reside, the business is located, and the collateral property is all in one county; and the lease company is in another county. My attorney objects to jurisdiction; and states that my county should have jurisdiction; lease company and judge say they have jurisdiction in lease company’s county. Judge orders judgment. State law requires that a lien be filed within 60 days. Lien is recorded in county that lease company is located in not me or the property. Lien has never been recorded in my county. It has been four years and now they are coming after me (statue of limitation is 6 years). The recording in the county clerks office of the lease company has it files as a “lien (judgment)” Now is the mortgage converted into a money Judgment? Does the mortgage still have standing (it hasn’t been removed) Is the filing valid since it was not filed within 60 days in the county that the property and I reside? The state is New York

[mikah2k]

Originally Posted by danielwik

... State law requires that a lien be filed within 60 days. Lien is recorded in county that lease company is located in not me or the property. Lien has never been recorded in my county. It has been four years and now they are coming after me (statue of limitation is 6 years). The recording in the county clerks office of the lease company has it files as a “lien (judgment)” Now is the mortgage converted into a money Judgment? Does the mortgage still have standing (it hasn’t been removed) Is the filing valid since it was not filed within 60 days in the county that the property and I reside? The state is New York

In re: "mortgage still have standing": I have no idea. Yet, you can stipulate an agreement with your adversary whereby mortgage is cancelled discharged terminated or whatever. Search for "accord and satisfaction" or "novation".

In re: "Is the filing valid": Reread the state law for clarification. Does such law read as "lien must be filed/recorded within 60 days" or "lien must be filed/recorded in the county of residence of the debtor" or etc.?

After rereading, if you believe the lien to be invalid, put such in writing and record in your county recorder's office and serve on your adversary.