In many types of larger purchases, the individual making the purchase is required to provide collateral when taking out a loan or borrowing money. A lien is simply an agreement that if the property owner does not repay the debt, the creditor obtains access to the property as a way to collect their debt. This is common for construction work, property improvements, or other similar types of costly upgrades.
Obtaining A Judgement Lien on Real Property
A judgment on property, or a judgment lien on real estate, can be ordered by the court if the creditor wins a lawsuit against the property owner. In these cases, the creditor obtains a judgment against the individual and then records a judgment lien on real property owned by the debtor.
There are different types of liens recognized by law. One is a voluntary lien, which occurs if the creditor lists the asset as collateral to a loan. While this is often for a vehicle, it can also be used for real estate.
The second type of lien is known as an involuntary lien. As the name implies, the property owner does not have to agree to the lien. Judgment liens through the court are a good example of this type of procedure. Even though the debt may not be related to the property, the judge orders a money judgment. The creditor then places the lien against the property of the creditor. This could be their home, an investment property they own or have equity in, or even commercial real estate if it is in their name.
Contractor’s liens, also known as mechanic’s liens or materialman’s liens, operate in a slightly different fashion. In these situations, the lien is placed against the property where the work was done if the owner fails to pay the contractor. The lien is recorded, and the contractor must move forward with a lawsuit within a specific amount of time. The amount of time varies by state.
The individual cannot place lien property for sale until the lien is released or removed. However, the lien does not always force the debtor to sell or make it easy to locate the debtor’s assets.
Problems for the Individual with the Judgment
If you have a judgment lien on real property, you are really holding a piece of paper. Going through the process to enforce the judgment can take time, money, and considerable stress.
In these cases, Mayflower Judgments provides a simple, effective, and streamlined solution. It is the ideal solution if the debtor is not making an attempt to fulfill his or her obligations so you can get the payment you deserve. With either a lien or a judgment, we work with creditors to help you get the money you are owed without all the problems of trying to collect.
We buy real estate judgments and liens, providing you with immediate cash for the judgment. This process can be difficult to do with other judgment services, but working with our team of experts provides a stress-free experience to turn the lien into actual cash you can use.