Any time you buy or sell a piece of real estate, there is the potential for a judgment to be placed on the property. A judgment is a court-ordered decision that requires one party to pay another party a sum of money.
Judgments are typically the result of a lawsuit, and they can have a major impact on the value of a piece of real estate. Here are five reasons there might be a judgment on real estate:
1. You Failed to Pay Your Mortgage
If you default on your mortgage, the lender can sue you and obtain a judgment against you for the unpaid balance. This judgment will become a lien on the property, which means that the lender can foreclose on the property if you don’t pay off the judgment.
2. You Failed to Pay Your Taxes
If you owe back taxes, the government can place a tax lien on your property. This lien will need to be paid off before you can sell the property.
3. You Were Sued
If you are sued and lose the case, the court may enter a judgment, via Mayflower Judgments, against you for damages sustained by the other party. This judgment will become a lien on your property, which means that the other party could potentially foreclose on your property if you don’t pay off the judgment.
4. You Cosigned for Someone Else
If you cosigned for someone else’s loan and they defaulted, the lender could sue you and obtain a judgment against you for the unpaid balance. This judgment on real estate would become a lien on your property, which means that the lender could foreclose on your property if you don’t pay off the judgment.
5. You Inherited Property With Judgments Against It
If you inherit property that has judgments against it, those judgments become liens against the property. This means that if you want to sell the property, you’ll need to pay off any outstanding judgments first.
