What are the issues of a Judgment Lien?

If a borrower owes a creditor and doesn’t recompense, the creditor can file a legal action and demand the balance of the debt owed. When a final judgment is acquired, the creditor can then obtain a lien against the debtor’s real property or even trustee. In California Law, there’s a process to attach the lien to the real property. More often than not, the judgment creditor must send an Abstract of Judgment to the recorder’s office in the county where the debtor possesses the property. The property cannot be conveyed until the lien is satisfied or otherwise removed. And unfortunately that means you, the real estate professional, can’t close the deal or sell your property.

What are the Options of a Judgment Lien?

It can be very complex to get rid of a judgment lien, however there are a number of possible strategies to do so. It’s vital to have a lawyer assist with the process so that all options are tired out and the judgment is accurately and completely eliminated. Here are a few strategies to remove the lien:

• Disapprove the lien. If the lien is invalid or was acquired in a manner that doesn’t follow the procedural requirements under the law, an experienced lawyer may be able to clear the lien from the property.  For example, an attorney may attempt to obtain a court order removing the lien if it was obtained through fraud, bad faith, coercion, or some other unlawful allegations. 
• Come to an agreement on debt. This is the simplest way to have the lien cleared. Contact the creditor who filed the lien and find out how much it costs to come to an agreement on debt. Be sure to include judgment costs, interests, and fees to ensure you have the correct amount. You might also set up a payment arrangement to make it convenient for you. 
• Negotiate a lower payment. A debt settlement attorney may be able to negotiate the total down to a more bearable amount for the debtor. Although payment arrangements may be able to be done, creditors usually demand a lump sum payment if they’re willing to accept less amount.
• Initiate bankruptcy. The debtor may need to contemplate filing for bankruptcy to get clear of the debt behind the judgment lien. Along with the bankruptcy filing, the debtor may file a motion to avoid the judgment lien and remove the cloud from the property title.

If in the event the judgment lien is satisfactory, the creditor will need to file a satisfaction of judgment with the court that furnished the lien. This will then have the consequence of clearing the title. Nevertheless, it’s crucial that the satisfaction be precise, legally adequate, and correctly filed in the proper county. An experienced debt settlement attorney can help with this procedure so that you, the real estate agent, can move forward with the transaction.

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