Understanding the Process of Removing a Judgement Lien from Property

Understanding the Process of Removing a Judgement Lien from Property

Introduction

The removal of a judgment lien from a property depends on several factors, including the payment of the judgment in full, the satisfaction of the lien by both parties, and the legal formalities involved. Once these steps are completed, the lien is effectively removed. This article outlines the process and highlights key considerations.

The Nature of a Judgment Lien

At its core, a judgment lien is a type of property lien that is filed against a property as a result of a legal judgment. This lien does not disappear immediately; rather, it continues to appear on property records until it is formally removed. However, it ceases to be a hindrance for obtaining credit once the judgment is paid and the lien is satisfied.

The Process of Removing a Judgment Lien

Three key steps must be taken to remove a judgment lien from a property:

Reaching an Agreement: You must negotiate with the judgment creditor (or their attorney) to determine the figure that will fully satisfy the judgment, including interest, costs, and any other applicable charges. Making Payment and Acknowledgment: Immediately following the agreement, you must make the payment and obtain a written acknowledgment from the creditor. This acknowledgment must also include the satisfaction of the lien, usually in the form of a satisfaction document. Filing the Satisfaction Document: The satisfaction document, along with any required fees, must be filed with the county clerk. This step officially ends the lien as a restriction on your property.

By following these steps promptly, the lien is effectively removed, and the property is once again free from any legal encumbrances.

Costs and Additional Steps

Removing a judgment lien involves costs, primarily associated with the fees for filing the satisfaction document with the county clerk. In addition, you may be required to notify credit bureaus of the fact that the lien has been satisfied, although this step is not as crucial as the legal formalities.

However, it’s important to note that the lien may not be properly registered, even if the judgment has been paid. This can result in an active lien being found during a title search. To address this, you should:

Verify that the lien has been properly registered. Notify the credit bureaus if you have been requested to do so. Seek advice from a Title Company and a real estate attorney to ensure the process is completed correctly. Keep a physical copy of the paid-off lien receipt for future reference, even if you have scanned it and stored it in the cloud.

Remember, the proper execution of these steps is crucial to ensure that the lien is truly removed and that there is no lingering record of the lien on your property.