subject: Liens With Judgments [print this page] I'm a judgment broker, and I am not a lawyerI'm a judgment broker, and I am not a lawyer. My articles are my opinions, and is not legal advice. If you ever want a strategy to use or legal advice, please contact a lawyer.
If a debtor currently has equity in property, or will probably (someday) inherit one or more houses from their (e.g., parents); a helpful strategy to use in the process for recovering a judgment, is to create a judgment lien.
A judgment lien attaches to a specific person or entity. A judgment lien usually will attach to any properties they in the future. The procedure for creating judgment liens are usually simple and cheap. The procedures and terminologies used varies in every state. Most states permit property liens to be recorded by judgment creditors.
In the majority of states, liens have to be recorded in every separate county that you want a lien your attach to the debtor's property. Florida is one exception, there a judgment lien gets recorded state-wide with the Florida Department of State. In Alabama, judgment liens gets recorded county by county. Judgment liens attach to property when a Certificate of Judgment (issued by the Clerk of Court) gets filed with the County Probate Office.
In California, judgment liens are recorded in each county. The judgment owner files an Abstract of Judgment with the County Recorder's office. A short time later, the County Recorder will mail your debtor a line notice.
In Georgia, judgment liens are recorded in each county. In Georgia, Fieri Facias (FiFAs) may be recorded. A FiFa is similar to a Writ Of Execution in other states. A FiFa may be recorded with the County Recorder to attach to your judgment debtor's property.
If your judgment debtor finds out that your lien has been put on their property, especially if they have some equity in their property; they might realize that having a judgment against them is serious. Judgment liens are an encumbrance on your judgment debtor's property. Once in a while, the notice of the lien alone, is sufficient to convince the judgment debtor to satisfy the judgment.
Depending on what state, the pre-existing liens on the property, and the equity situation; there might be a risk that the judgment debtor's property could get sold by the Sheriff to satisfy your judgment debt. At the very least, having a judgment lien most often makes it harder or impossible to get refinancing or financing for their encumbered property. Banks usually requires the judgment debtor to satisfy your judgment before any financing is approved.
Recording a judgment lien is a passive way to enforce a judgment. You record liens, keep the judgment and the liens renewed, and one day "when you are not thinking about it", their property is refinanced or sold, and boom, you are paid toward satisfying your judgment, either partially, or in full.
Currently, many properties are upside down. Still, recording liens sometimes work, especially when a debtor stands to inherit a property. If home prices ever return, the easy procedures to establish a judgment lien will once again be one of the top-ranking "bang for the buck" judgment recovery tactics.
