A judgment lien on real estate or property is a kind of non-consensual lien or a lien that becomes a part of a property without the owner’s agreement. This type of lien is created when someone wins a lawsuit against a property owner and records the judgment against the property.
How Judgment Liens Are Created
A judgment lien is only created once one party sues another and wins a money judgment. Most states require the judgment creditor, that is, the party who won the lawsuit, to record the judgment by officially filing it with the state or county. In some states, judgments entered against the property owner creates a lien on the property owned in that particular county, which means the creditor isn’t required to record the judgment before obtaining the lien. Some companies, such as Mayflower Judgements, can purchase judgments or liens if the creditor wants to receive payment but is unable to realize the judgment. Buying judgment is something that can help in this situation.
Types of Property That Judgment Liens Apply to
There are three main kinds of property a judgment can attach to, including a judgment lien on real estate. In these cases, judgment liens can affect real estate owned in the counties where creditors record them or the counties where the court establishes the judgment. Selling this real estate is often expensive, so creditors won’t likely consider a judgment unless the other party has significant equity in the real estate.
Second, you should know that liens can also apply to personal property. Beyond real estate, in some states, judgment liens can also apply to personal property but with one drawback because they’re often ineffective because most types of personal property are protected with exemptions that allow the owner to keep it. Also, this property often isn’t worth the effort and money spent on obtaining it.
And finally, a lien may apply to your car or truck. Judgment creditors can also file judgments to obtain a lien on any type of motor vehicle. These are some of the basics of judgment liens to keep in mind. Connect with Mayflower Judgements through Google Maps!
