When you are in debt to a creditor, and you fail to repay your loan in full agreement with the terms, the creditor can sue the debtor in court. Should the court rule in favor of the creditor, the court will enter a judgment. A judgment lien on real property is a type of security interest the creditor can obtain through court action. The creditor will be granted a judgment lien on real property. The creditor has the right to take the property and sell it to satisfy the lien. A judgment lien can attach personal property or real property. Real property includes homes, land, and buildings. Personal property includes vehicles, jewelry, and bank accounts.
The amount of money required to purchase a home is such that most people borrow upwards of 90 percent of the selling price. The creditor demands something to minimize the financial risk associated with the loan. The borrower gives the creditor the rights to the property until the loan is paid in full. In the event of default, the creditor can take action on the property that was pledged as security. In the event the courts agree with the action, a judgment lien will be awarded to the creditor. It can be difficult and time-consuming to turn the house into money, at this time, many of those awarded a judgment lien turn to companies like Mayflower Judgments, companies that buy judgments for cash.
Creditors have numerous ways to collect on a debt. Many companies are in the business of buying judgment solutions. There are many ways to collect a judgment debt. The easiest is to have the creditor withdraw funds from his or her bank account. If it is a business debt, earnings can be taken with the help of the sheriff’s office. For large debts, the solution is often taking the debtor’s real estate. The company pays all outstanding debt and recovers its investment by selling the property on the open market.
