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

The largest financial intermediaries directly involved in the financing of real estate. Commercial banks act as lenders for a multitude of loans. While they occasionally provide financing ...

Two or more people have a legal duty that can be enforced against them by joint action, against all members, and against themselves as individuals. For example, a bank can require repayment ...

The profit or loss from selling an investment that is held one year or less. Short-term gains are ordinary income, while short-term losses are deducted from current income. Short-term gains ...

A capital asset. An expenditure to buy property and other capital assets that generate revenue. Securities of real estate companies. ...

Any of several types of legal joinders whereby one or more parties unites with or joins other parties in a legal action or proceeding even though the party may not be a direct part of the ...

Intent to deceive or never to carry out the provisions of an agreement. ...

Combination of insurance policies on property with each providing an additional increment of coverage exceeding the limits of the preceding policy. For example, policy A adds $70,000, then ...

Used to indicate what is included in a monthly payment on rental property. If the payment includes only principal and interest, property taxes, and hazard insurance would make the total ...

Having two families live in a residence designed for only one family. This violates single-family residence zoning. ...

Popular Real Estate Questions