Judgement Liens: What To Be Aware of & What You Can Do.
When you're buying a home, the last thing you want is a legal surprise—and that’s exactly what a judgment lien can be. A judgment lien is a court-ordered claim placed on a property as a result of a lawsuit, typically when a homeowner owes a creditor money and hasn't paid. While it may not be your debt, it can become your problem if it isn’t cleared before closing.
What Could Happen:
- Title Issues – A property with a judgment lien can’t transfer clean ownership, delaying or preventing the sale.
- Legal Liability – In rare cases, unresolved liens could even put the buyer at risk of inheriting financial responsibility.
- Delayed Closing – Discovering a judgment lien late in the process can cause last-minute delays or the deal to fall through.
What You Can Do:
- Title Search – A title company will conduct a full search to uncover any liens or legal issues tied to the property.
- Seller Responsibility – The seller must pay off the judgment or negotiate a settlement before the sale can move forward.
- Title Insurance – This protects you from unknown or unresolved liens that may surface after closing.
Judgment liens don’t have to be a dealbreaker, but they do require attention and action. With a professional team guiding your purchase—including a trusted lender and title company—you can navigate these challenges confidently and secure a clean title.
Comments
Post a Comment