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A judgment is a court decision that results from a lawsuit. If someone sues another person or company, the court will hear the case and make a decision about who is right and who is wrong. If the court decides in favor of the person or company that sued, a judgment is entered against the person who lost the case.
For example, if a creditor sues a borrower to collect a debt and wins the case, the court will enter a judgment against the borrower. This means that the borrower owes the creditor the amount of the debt, plus any court fees and interest. If the borrower doesn't pay, the creditor can use the judgment to place a lien on the borrower's property.
"A Deep Dive for Real Estate Agents"
Here are a few things you should know about judgments and how they can apply to real estate buying and selling:
Judgment Liens: If a judgment is entered against a person and they do not pay the debt, the creditor can use the judgment to place a lien on the debtor's property. This means that the debtor cannot sell or refinance the property until the debt is paid off.
Title Search: When buying or selling real estate, it's important to conduct a title search to check for any liens or judgments against the property. If there is a judgment lien on the property, it must be satisfied before the property can be sold or refinanced.
Satisfaction of Judgment: If you have a judgment against you, it's important to satisfy the judgment before buying or selling real estate. This means paying off the debt or negotiating a settlement with the creditor. Once the judgment is satisfied, the lien can be released, and the property can be sold or refinanced.
Homestead Exemption: In some states, a debtor's primary residence may be exempt from judgment liens up to a certain amount. This means that even if a judgment is entered against the debtor, their home may be protected from liens.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh, a judgment, a judgment, it's a decision so grand,
Made by a judge in a big courthouse stand.
It happens when two folks can't agree,
So they take their case to court, just wait and see.
If the judge decides that one is right,
Then a judgment is entered, oh what a sight!
It means the loser must pay up, you see,
And if they don't, there's trouble to be.
A lien on their property, that's what can occur,
If they don't pay the debt, they'll lose it for sure.
So remember, my friend, if you end up in court,
A judgment against you can cause a great report!