A judgment filed in your county is a lien on your real property
by
Jonathan Cohen on Jun. 15, 2010
Bankruptcy & Debt Credit & Debt Real Estate Real Estate Other
Summary: A judgment filed in your county is a lien on your real property. It can prevent you from closing on a sale of property.
Have you ever been sued and lost and there is a judgment against you?
That judgment can be as little as several thousand dollars, or as much as $100,000. The judgment creditor, say, a credit card company, has the option of collecting that judgment by garnishing your paycheck, but if the judgment creditor investigates you and finds that you own real property, he is likely to file that judgment with the County Clerk. That filing is then a lien on your property, so that when you want to transfer the property, guess who 'vets' that transfer?
That's right - it's the county clerk, who is responsible for the accuracy of real estate titles within your County!
In New York, if you are planning to sell any real estate, you should investigate (pull your credit report, or more easily, go online with your county clerk) whether there is an outstanding judgment against you. If so, you have several options:
1) what if the judgment was against you and was entered on default? You may be able to vacate it
2) what if you paid the judgment? then you should have a satisfaction of judgment from the judgment creditor
Either way, you should request a certificate of disposition from the court in which the judgment was entered. You can do this by contacting the clerk of the court. Remember, there is a difference between a court clerk and a county clerk. The county clerk is often located in or near the Supreme Court (in New York). THe county clerk acn be in your local court taht is not your supreme court.
So take that certificate of disposition, and make sure that your county clerk knows about it and get that judgment off the records.
There have been times when a debt has been paid off, or has been discharged through Chapter 7 bankruptcy, and the judgment is still on the clerk's records. The property the seller is trying to dispose of may have that judgment (which is a lien upon that property) still upon that property and may have to pay money again to that creditor so that the creditor will get that judgment lien off. It has happened many many times.
As always, be vigilant, or if you lack vigilance (and instead you enjoy life) depend upon your local experienced, seasoned lawyer.
That judgment can be as little as several thousand dollars, or as much as $100,000. The judgment creditor, say, a credit card company, has the option of collecting that judgment by garnishing your paycheck, but if the judgment creditor investigates you and finds that you own real property, he is likely to file that judgment with the County Clerk. That filing is then a lien on your property, so that when you want to transfer the property, guess who 'vets' that transfer?
That's right - it's the county clerk, who is responsible for the accuracy of real estate titles within your County!
In New York, if you are planning to sell any real estate, you should investigate (pull your credit report, or more easily, go online with your county clerk) whether there is an outstanding judgment against you. If so, you have several options:
1) what if the judgment was against you and was entered on default? You may be able to vacate it
2) what if you paid the judgment? then you should have a satisfaction of judgment from the judgment creditor
Either way, you should request a certificate of disposition from the court in which the judgment was entered. You can do this by contacting the clerk of the court. Remember, there is a difference between a court clerk and a county clerk. The county clerk is often located in or near the Supreme Court (in New York). THe county clerk acn be in your local court taht is not your supreme court.
So take that certificate of disposition, and make sure that your county clerk knows about it and get that judgment off the records.
There have been times when a debt has been paid off, or has been discharged through Chapter 7 bankruptcy, and the judgment is still on the clerk's records. The property the seller is trying to dispose of may have that judgment (which is a lien upon that property) still upon that property and may have to pay money again to that creditor so that the creditor will get that judgment lien off. It has happened many many times.
As always, be vigilant, or if you lack vigilance (and instead you enjoy life) depend upon your local experienced, seasoned lawyer.