Definition of "Judgment lien"

Lorelei  Atwood real estate agent

Written by

Lorelei Atwoodelite badge icon

Higgins Group Private Brokerage
Forbes Global Properties

Wondering what a Judgment Lien is?

Well, a Lien can be consensual or non-consensual, right? Meaning it can be forced or agreed upon by way of a bilateral contract. When we say “forced” is by way of a lawsuit that imposes a lien: a judgment lien.

Wondering how to stop a lien on your property? Well, once a court assigns a judgment lien, the homeowner can do the following in order to get rid of it:

  • Pay off the debt or fix whatever it is that made the judge impose the judgment lien
  • Ask the courts (all the way to the supreme court, if possible) to remove the judgment lien
  • File for bankruptcy as a last resort measure

But how a judgment lien is created? Who can put a lien on your property? It’s pretty simple. Say you owe money to someone. That someone sues you in court, and the judge allows them to record a lien on your asset as a way to ensure that you pay off the debt.

Judgment liens are typically contingent to the state where the court is located. That is; if you have a dispute on New Jersey, the judge will not be able to apply the judgment lien on a New York property you have. And a pesky feature of judgment liens is that they become attached to properties you acquire later. In fact, even if you don’t have any asset, the lien gets recorded to your name and whenever you buy any form of real estate, the lien – that was there silently sitting, waiting to come alive - becomes live.

The good news: most of them expire after some time (typically 7 to 10 years), but some can be renewed indefinitely.

Real Estate Tips:

Never enter the home buying process without Title Insurance! Your pockets and your well-being will thank you!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Suppose you wish to sell your property fast and expect a high return on investment. In that case, it would help to reach out to expert local real estate agents who undertake the job of ...

Rule within the Internal Revenue Code applicable to capital gains from selling real estate that has been depreciated for tax purposes. Most buildings must be depreciated using the ...

Drawing for the entire structure or part of it that is detailed and in scale so that engineers and construction workers may readily follow it. ...

Claim on property by an unpaid workman or contractor. The property may be sold to recover the money owed. The legal justification of the mechanic's lien is that the labor and materials ...

Individual making the payments in a mortgage or pledging a mortgage or property. ...

Primary residence of an individual. The principal residence can be a single family home, condominium, cooperative, or trailer. A principal residence may qualify for a homestead exemption in ...

Property tax that varies in rate depending on the zoning classification (use) of the property. ...

Part of a building that is connected to but leads away from the main structure. ...

Letter sent an individual informing him or her they are in default on an agreement. Normally, a notice of default will give the defaulting party the terms necessary to remedy a default and ...

Popular Real Estate Questions