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!
Popular Real Estate Terms
(1) Temporary and symbolic payment showing good faith and obligating two or more individuals until a final transaction takes place. The binder is typically returned if the final agreement ...
Opinion of a judge having no direct legal or binding effect on the outcome of a pending judicial decision. An obiter dictum is considered to be an incidental judicial remark about some ...
Metal or wood channel attached immediately below or along the eaves of a building for the purpose of channeling rainwater away from the structure. The gutter prevents rain runoff from ...
The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...
Geographic area that is attractive to prospective tenants. Square footage in an office building or apartment house that may be rented by a tenant. ...
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Money set aside to buy new assets when the older ones are no longer appropriate for the intended use. An example is when the landlord must replace a deteriorating and malfunctioning air ...
Contract containing provisions of the insurance policy specifying who the parties are, what amounts and due dates, deductibles, time period, ceilings, kind of property., location of ...
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