A judgment lien can create a home sale difficult. Judgment liens are courtroom awards for cash owed to a creditor; the exemptions are attached to the debtor’s property. Clear title, or string of ownership of a piece of property, typically needs to be obtained for mortgage loans and the buying and selling of a home. A judgment lien is regarded as a problem with the title and has to be dealt with to complete a real estate transaction.
Get in touch with the creditor that filed the lien. Ask what the total sum due is, such as all additional court or set charges over the initial judgment complete.
In the event that you can’t pay in full, make payment arrangements. Negotiate with the creditor if possible to reduce the total due. Request the payment amount and due dates for the agreement be given to you in writing.
Pay the lien amount in full or as agreed. Utilize the creditor’s favorite payment method. Some lenders will require a particular way of payment, like a cashier’s check.
Request a satisfaction of lien. The creditor will either mail the record to you or document the gratification for you. The judgment lien is discharged and removed once the gratification is registered. Request additional copies of the satisfaction papers.
File the gratification of lien if mailed to you. The record needs to be listed in the county recorder’s office in which the judgment was registered. If the judgment was registered in more than one place, record the satisfaction in another county in which it registered. Check the recorder offices in all counties where you have property for your judgment.
Consult with a bankruptcy lawyer. Chapter 7, complete debt wipe-out, can make it possible for you to get the judgment removed in the courtroom proceedings. Chapter 13, debt reorganization, will allow you to include the judgment in a repayment program, finishing in a discharge of the lien. Discuss the decisions together with your lawyer prior to filing to determine whether the exemptions can be managed in the court procedure.
Contact the significant credit bureaus once the satisfaction is registered. Request the judgments be removed from your credit report.
Contact a lawyer when the lien is invalid. The lawyer will sue the creditor in court to be given a court order to vacate, or remove, the judgment in the county records.