Selling A House With A Lien or a Judgement

What Is a Judgement Lien On My Title?

selling a house with city fines, liens or judgementsIn a civil court case, after a judge or jury hands down a verdict — or after a court-approved settlement — a judgment is entered by the court. As part of a typical judgment, the court orders the payment of money from one person to another. But the person who owes the money (the debtor) doesn’t always pay up. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor’s property.

What kind of property is subject to a judgment lien under Oklahoma law?

In every state, a judgment lien can be attached to the debtor’s real estate — meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor’s personal property — things like jewelry, art, antiques, and other valuables.

In Oklahoma, a judgment lien can be attached to real estate only (meaning a house or similar property interest).

How does a creditor go about getting a judgment lien in Oklahoma?

To attach the lien, the creditor files the Statement of Judgment with the county clerk in any Oklahoma county where the debtor has property now or may have property in the future.

How long does a judgment lien last in Oklahoma?

A judgment lien in Oklahoma will remain attached to the debtor’s property (even if the property changes hands) for five years.

Keep in mind: In Oklahoma, a creditor’s ability to collect under a judgment lien will be affected by a number of factors — including a fixed amount of value that won’t be touchable if the property is the debtor’s primary residence (called a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. If things get complicated, you may want to talk with an experienced Oklahoma bankruptcy and debt attorney to help you sort out any lien issues.

Selling A House With A Lien

Common Types of Judgements & Liens

When talking about ‘judgements’ most people are talking about debts that have been awarded to another party in a court by a judge. For example; you didn’t pay your credit card bills or selling a house with a lien or judgement were found guilty of ripping off a business partner, not paying a commercial loan back or were at fault in an accident.

Not all states allow these types of judgements and debts to be attached to personal residences. Some may. However, there are many other types of judgements, debts and liens that may be attached to your property.

Common ones include:

  • Utility liens
  • IRS liens
  • Property taxes
  • Second and third mortgages and lines of credit
  • Mechanics and contractor liens
  • Some types of grants for homeowners
  • City code violations
  • Attorneys fees in a foreclosure
  • Point of Sale conditions required by cities
  • HOA and condo dues and special assessments
  • Prepayment penalties

Again, some of these are simply debts that need to be paid off at closing from the seller’s proceeds before a transfer is complete. Others can actually prevent a sale and the buyers from obtaining title insurance and a mortgage loan. Some may need to be settled in advance. Or the buyer must be willing to take on these additional debts.

The Keys to Selling a House with Judgements or Liens

Find Out How Much You Owe

If possible, find out how much you owe upfront. This definitely helps avoid surprises, gives you a more accurate estimate of what you’ll net in a sale, and avoid roadblocks. You can request payoffs from lenders and creditors, and have a title company perform a lien search.

2. Native Realty Buys Houses with Liens And Judgements

Often you may not have the cash to pay off judgements and liens before the closing. You may not even be able to sell for enough to cover all the judgements and liens. You probably don’t want to gamble on taking on more debt or betting your last savings or retirement money on settling extra debts or making improvements with just a hope of being able to sell. So, you may have to be more transparent about the challenges upfront, and look for a buyer willing to take on these debts and challenges themselves. This isn’t going to be your average home buyer. It will probably need to be a professional investor.

3. Native Realty Has The Experience

If the numbers just don’t work as they are or there are code violations and permit problems which need to be solved you need a buyer who is not only willing to take them on, but who has the experience in negotiating with creditors and the city and knows how to get them solved or has an attorney or title company who can do it.

4. Selling A House With A Lien?  We Are Here To Help

Selling a house with a lien?  Native Realty buys houses with judgements and liens. Contact us to see how we can help you today.

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selling a house with a lien or judgements?Selling a house with city fines and liens