Definition of "Judgment lien"

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

Uncertainty in the price of real estate due to market, economic, political or other conditions. ...

Money payments to be delayed for a future date or extended over a period of time. ...

Expected selling price of property less costs to sell. It is the net amount received upon the sale of property. gross receivables less allowance for doubtful accounts, representing the ...

Recurring obligation or assurance given. ...

Methods of owning real estate. Ownership form has important consequences for income tax, estate tax, corporate income tax, and survivorship. Real estate may be owned by one or more persons. ...

A tender has several meanings in everyday discourse. Most generally, tender means a formal offer designed for acceptance with the anticipation of soliciting a response in return. Bidding ...

Individual: Adjusted gross income less itemized deductions and personal exemptions. After taxable income is computed, the tax to be paid can be determined by looking at the tax rate ...

Distance from the location of natural ground and water to the actual ground level. ...

Legal obligation to pay taxes associated with owning property or earning income. For example, a real estate owner must pay property taxes. ...

Popular Real Estate Questions