WHAT HAPPENS AFTER A JUDGEMENT IS FILED AND WE DID NOT MEET THE DEADLINE TO ANSWER THE JUDGEMENT

If the deadline to respond tot he summons has passed you may at risk of the creditor receiving what is called a Default Judgment against you. A second mortgage holder rarely will initiate a foreclosure proceeding due to the first mortgage having first priority on the sales proceeds, unless there is a ton of equity in the property. If a judgment has been issued against you, you may be at risk of having your wages garnished. If you have other debts in addition to the second mortgage you are having trouble paying, I recommend that you get a free consultation with a local bankruptcy attorney.

If you did not file within the time frame you are suppose to file an Answer, you are in default. You must make an application to the court to allow you to file a "late" Answer or if the default judgment has been rendered, you must make a motion or Order to Show Cause to vacate the default judgment. You should speak to an attorney about other option, potentially, bankruptcy, if your circumstances permit it. Bankruptcy protection might be a solution as it aims to give you a fresh start. Good luck.

Your question is a little confusing. A Lawsuit is started by serving a Summons and Complaint. A judgment is the Order that ends the lawsuit, whether by default or after motions or a trial. Your options are quite different depending on where in the legal process the case is. I am guessing you were served with a lawsuit a few months ago and did not answer. I can't tell whether the Plaintiff already applied for a default judgment, or if you are asking what happens if they do. Like most consumer law attorneys, I am happy to give a telephone consult to help sort out these types of cases. When I look at a case like yours I look at whether the Plaintiff followed all the rules, whether they complied with federal laws such as the Fair Debt Collection Practices Act, and whether the Defendant is at risk of losing money or property because of a judgment. It may be that you had defenses you were unaware of, if so, you may be able to answer the lawsuit still, or if default judgment was granted less than one year ago, you may be able to bring a Motion to Vacate the default judgment. A lien is just a legal concept for an interest in the property. When you take out a mortgage, you give the lender a lien on your house. It sounds like the second mortgage has decided to sue you for the money, rather than try to foreclose on the lien. If that is the case, they have elected their remedy. They decided they want a money judgment, and in so-doing they extinguished the lien. It is true that a civil money judgment acts as lien on property in Minnesota, but that lien does not attach to homestead property. Many lawyers and real estate professionals do not understand that a judgment lien does not attach to the exempt homestead property and can be avoided if you need to sell or refinance. Double Jeopardy is a concept that applies to criminal cases. The "jeopardy" is the government putting you in jeopardy of losing your freedom, i.e. locking you up. This is civil law, no jeopardy at all. If someone sues you for something you have already been sued for, the previous lawsuit can sometimes be a reason to dismiss the new one, but you have to raise the issue as a defense. In this, the lien you gave as part of the mortgage gave them the option to foreclose. They elected to forego that option and pursue only the money you borrowed. Also, Bankruptcy wil discharge this debt, now that the second mortgage has elected its remedy, they are treated like a regular old unsecured creditor.

If you were served with a Summons & Complaint then you have 20 days within which to respond before the creditor can seek a default judgment. If a judgment has not yet been entered against you then you could still try to submit an Answer, but if you don't have any defenses against the debt then the creditor will eventually obtain a judgment against you. Once the creditor has a judgment then it can begin collection activities, including garnishment of wages and/or bank accounts. It sounds like the creditor is suing you because of non-payment. You should look into a personal bankruptcy to have your personal liability discharged on the mortgage debt. I'm assuming that the property has not gone through a foreclosure here. The creditor would still have a lien on the property, which is what allows it to foreclose on the property if you don't make the payments. But a creditor could also try to sue you for the debt, which again would be discharged in a personal bankruptcy if you chose to pursue that route. It sounds like this might be a second mortgage holder that is coming after you, because a first mortgage holder generally will just foreclose the property if the payments are not being made. In any event you should contact a bankruptcy attorney to discuss your options.

It has become more common for second mortgage holders who believes that there is no equity in the property to support their lien to sue out the debt owed on the mortgage note. If you were served and did not answer they will, and it appear that they have, recieved a judgment against you. If the mortgage was valid you probably did not have a defense to their action in any event. They continue to have a mortgage lien on the home. You have a few options: 1) try to settle the claim. In these situation the bank is often willing to settle the claim for a percentage of the debt owed. 20% to 50% of the debt is not an unusual settlement. An attorney can help you negotiate that claim. 2) if the home is worth less than the amount owed on the first mortgage a Chapter 13 could be filed to strip off the second mortgage, or 3) ou could file a Chapter 7 bankruptcy if you want to walk away from the home and the debts.