can a mortgaged home be taken away in a lawsuit

by Guest » Thu Mar 14, 2013 02:09 pm
Guest

I was in an accident,still being investigated.I may be charged with vehicular assault.Can my mortgaged home be taken away if I am sued by the other person involved?Don't know if the insurance covered all the medical bills for the other person who was injured.

Total Comments: 2

Posted: Thu Mar 14, 2013 02:54 pm Post Subject:

Last parts first.... if you caused an injury to someone, it probably would not matter if their insurance paid for their medical expenses. Most likely that insurance could come after you and/or the other person could pursue you for their pain and suffering even if all of their medical bills were addressed.

The rest is more of a legal question rather then insurance. From what I've seen, most states won't allow a primary home to be taken away. I'm guessing that if they obtained a judgement against you then they could attach that judgement as a second lien on the home. This means if the home is ever sold both liens need to be satisfied and the person with the judgment would be 2nd in line for any money made on the sale. It's _highly_ unlikely that this would happen as almost no attorney is going to wait year and year and years to get paid one penny for their work on the case.

Posted: Thu Mar 14, 2013 03:38 pm Post Subject:

Can my mortgaged home be taken away if I am sued by the other person involved?

Mortgaged or not, your home is an asset that could be at risk of loss. Not by confiscation as you imagine, but by the force of a judgment that needs to be satisfied and would cause you to have to sell the property in order to raise some or all of the money needed to pay off the judgment.

As far as I know, only the IRS has legal authority to seize a residence in order to satisfy a tax lien.

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