I served rent levies to collect a past due judgment. Defendant served me with an ex parte Motion to Quash or Stay of Notice of Levy under writ of execution. He claims that the rental income from these properties are used to pay the mortgage payments.
Per the terms of the deed of trust, the secured mortgage holders are assigned the payments of rent. Without the rental income being applied to the mortgage payment, the properties will go into default and ultimately be lost to foreclosure. This would affect not only the mortgage holders but also the tenants
Mortgages are currently not in default, my question is if he has a chance to have my levy cancel or if I have a chance of my levy to survive his argument?
2 Answers from Attorneys
I told you the answer earlier. It's in the papers you were served. If he is not in default, the lender has no right to the rents. You should know from the papers you received whether or not the lender has perfected a lien on the rents. The judgment debtor does not have standing to raise that issue anyway.
Mr Roach is correct. You need to look at the papers you were served. Perhaps you do not understand them. You can contact your local bar association for a referral to an attorney in your area that can meet with you and review them for a small fee.