Is a Property Lien the Same Thing as a Judgment Lien on Real Property?

Real estate and law are both very complicated fields. When you combine them, things just get a little murkier. This is exactly where the subject of liens on real property resides. Such liens involve aspects of the legal system and land. However, there are two distinct types of Real Estate Judgments: a judgment on property and a property lien. How you define either one depends on a couple of different factors.

The Main Difference

A judgment lien on real property mainly differs from a property lien in the way the creditor obtained its rights. The main thing to look at is whether the lien was done voluntarily, or through the force of the court. Understanding this is key to comprehending the difference between a judgment lien and a property lien. Of course, you can always contact Mayflower Judgments for more information on the process in your state.

A Close Look at Property Liens

As mentioned, property liens are created through a voluntary act of the property owner. Why would someone want to do this? Well, there is one scenario in which it makes pretty clear sense: If you take out a mortgage for property, you will need to consent to a lien. Thus, these liens provide some security for lenders when loaning you a large sum of money. This is one big difference between a property lien and judgment on property.

In most cases, the grant of a mortgage will be conditional on assenting to a property lien. In the case that you (as the borrower) defaults on the loan, the creditor has the right to foreclose on the property. A foreclosure action gives the creditor the chance to recover money it lent.

Distinguishing Judgment Liens

Essentially, judgment liens are created when a creditor wins a judgment. In this sense, it is an involuntary lien. This type of lien will remain on the property until the creditor agrees to remove it. If the property owner decides to sell the home, it will become necessary to satisfy the lien.

Summarizing Lien Types

As you can see, there is a definite difference between the two types of liens. If you have a lien on your property, it is important to understand how it got there. Use the information above to help figure out where you stand.

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