Michigan Laws 600.2807 – Property owned as tenants by the entirety; priority; exceptions; sale or refinance of property subject to judgment lien; limitation on proceeds
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(1) A judgment lien does not attach to an interest in real property owned as tenants by the entirety unless the underlying judgment is entered against both the husband and wife.
(2) With the following exceptions, a judgment lien has priority over a lien recorded with the register of deeds after the notice of judgment lien is recorded:
Terms Used In Michigan Laws 600.2807
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Judgment: means a final judgment of 1 of the following:
(i) A court of record of this state. See Michigan Laws 600.2801Judgment lien: means an encumbrance in favor of a judgment creditor against a judgment debtor's interest in real property, including, but not limited to, after acquired property. See Michigan Laws 600.2801 Lien: A claim against real or personal property in satisfaction of a debt. Mortgage: The written agreement pledging property to a creditor as collateral for a loan. Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land. state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(a) A purchase money mortgage.
(b) A mortgage to the extent that proceeds of the mortgage are used to pay 1 or more of the following:
(i) Purchase money mortgage debt.
(ii) A subsequent refinancing of purchase money mortgage debt.
(iii) A nonpurchase money mortgage recorded before attachment of the judgment lien.
(c) A lien that secures an advance made under a previously recorded future-advance mortgage.
(d) A lien that has or acquires priority by operation of law.
(e) A claim of lien recorded with the register of deeds under section 111 of the construction lien act, 1980 PA 497, MCL 570.1111.
(f) A lien for unpaid assessments or charges due to a condominium association, homeowners’ association, or property owners’ association that arises from or pursuant to recorded restrictions that run with the land.
(g) A state or federal tax lien.
(3) If property subject to a judgment lien recorded under this chapter is sold or refinanced, proceeds of the sale or refinancing due to a judgment creditor are limited to the judgment debtor’s equity in the property at the time of the sale or refinancing after all liens senior to the judgment lien, property taxes, and costs and fees necessary to close the sale or refinancing are paid or extinguished.