If the Home Buyer Has a Judgment Against Him Will it Affect Me With Seller Financing?
Full Question:
Answer:
The answer will depaend on whether the house is transferred to their name before the loan is fully repaid. If their name is on the deed, then any judgment liens filed on the property could cause a foreclosure of the lien by selling the home. The proceeds will be paid to creditors in the order that the liens were filed with the county recorder's office. It is possble that there won't be any proceeds remaining for creditors who filed later to receive anything after the senior creditors are paid. Generally, when a buyer has other debts, it may affect their available resources for repaying a loan.
A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." If the judgment remains unpaid, the judgment debtor may request that the court place a lien on the judgment debtor's property, such as bank accounts or real property owned, to secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt.
