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
Assemblage in real estate is the process of combining multiple small plots of land into one larger plot. This is accompanied by plottage, which is the increase in value that occurs when ...
Same as term government rectangular survey: Way in which the U.S. government uses to subdivide public land. Land is designated as either a base line (East-West) or principal meridian line ...
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 ...
(1) Judgment against a defendant who does not respond to the plaintiffs lawsuit or fails to appear in court at the hearing or trial date. (2) Judgment issued by the court against the ...
(1) Methods that involve discounting the future cash flows generated by an income property. These techniques are used primarily for valuation. (2) Methods of selecting and ranking ...
Room that is fit for living in. the building in which the room is located conforms with the building code and has a certificate of occupancy. Usable for all purposes, but does not include ...
Existing state of affairs with respect to the real estate market and conditions. ...
The concept of a release can define various meanings in the financial and real estate business. Typically, it establishes a discharge or literal escape from a loan borrower's economic ...
Voluntary giving up of a right of a lien, usually on a temporary basis. The waiver may be explicitly stated or implied. An example is when a lender waives its right of lien against ...
Have a question or comment?
We're here to help.