A judgment lien on real estate can and will affect your ability to sell or transfer the ownership of said property. The creditor has to wait sometimes years and even decades before the debt is paid. The homeowner may want to leave their real estate to their child, but cannot because of the lien. The process is hard on both parties.
What Is a Judgement Lien?
Did you have your roof replaced without paying the contractor in full? Did the contractor get a judgment in their favor and submit a lien on your home? When you have contracted work or owe a creditor, the creditor can record this debt and request a lien be put on your property. They do this by submitting the judgment with the Register of Deeds wherever it is located in your local area.
Often, mortgage companies and lenders will not close if there is a lien. Therefore, a judgment lien on real estate can cause a lot of trouble for the homeowner if they try to sell. But what if the homeowner does not choose to sell or work on their property? The creditor may not, if ever, receive their debt owed for years and years. This is extremely difficult on small businesses that have little capital and difficult on large businesses that have tons of customers with liens. So what does a creditor do?
Cash for Credit
There are companies that will buy a judgment lien on real estate, such as Mayflower Judgments. These companies will buy the lien on the real estate, allowing the business to collect their debt quickly. The process is fairly fast and simple, especially compared to waiting years to collect the debt.
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