When you have a judgment against you, your credit takes a big hit. It can eventually lead to the freezing of bank accounts, garnishment of wages, and the seizure of your property. This sounds like a scary process, and it really can be.
The most important thing you can do is understand the laws about a judgment. It is also crucial to be proactive in taking care of the debt involved. This may leave you wondering, “Can I sell my house with a judgment against me?”
You can sell your house, but only if you satisfy your debt first or through the sale.
Let’s take a look at what you need to know about selling a house if you find yourself in this situation.
How Long Does a Judgment Last?
The laws about debts and debt collection vary by state. How long a judgment lasts depends on the state that it was filed in. For example, in Ohio, it will be enforceable for five years. In Massachusetts and New York, it is enforceable for 20 years. In New York however, it must be renewed after the first decade to remain applicable.
It is important to understand that a judgment will stay attached to your property, even if you sell it. This may make your property unmortgageable or hard to sell.
When private home buyers go through the process of buying a home, they may be told that the title company found a judgment on the seller. This presents a problem because the seller may be forced address the debt before the property can be traded, sold, or purchased.
Can You Be Forced to Sell Your Home to Pay for a Judgment?
In some cases, a creditor will be able to force the sale of the property to satisfy a debt for which they have received a judgment. However, understand that this comes at the very end of the process and is not the immediate resolution.
How to Remove a Judgment Lien From Your House
What a creditor wants is to be paid what they are owed. Therefore, removing a judgment lien from your house is to pay the debt or negotiate a payment plan with the creditor. Many people choose to sell a home specifically to pay the debt. Doing so can be advantageous for the seller in situations where they want to start over financially with a clean slate.
Can Judgments Be Paid at Closing?
Judgments can and often are paid at closing in a couple of ways. They are paid by either party or with the proceeds from the sale of the home. However, this can become complicated when dealing with private buyers who are using banks to finance their purchase.
In this case, it is far easier to work with a cash buyer for the best outcome and to streamline the process. Using a professional home buyer who purchases in cash can alleviate problems associated with selling your house through the more traditional routes. But can you be forced to sell your home to pay for a judgment?
Looking for a Cash Home Buyer?
When you need to sell your home quickly and would prefer a Long Island cash home buyer, you should contact Handsome Homebuyer. They purchase homes that have a mortgage, lien, or even a judgment.
As professional homebuyers, they know all of the system’s ins and outs and can help you keep the most money in your pocket possible. To see what they can do for you, contact Handsome Homebuyer today!
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