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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Priority of the AJ dictates its fate. Posted by Ward-CA- on January 15, 2002 at 7:53 AM In Reply to: Re: How does the AJ affect the Trustee Deed Upon Sale posted by Larry Van Valkenburgh on January 14, 2002 at 10:24 PM : : : I was under the impression that most judgements were against the individual and that they were not connected with the property and hence had no capacity to cloud the title. Am I wrong? : : : Thanks, LarryVV : : =•=•=•=•=•=•=•=•=•=•=•= : : Larry, by operation of law, an abstract of judgment (AJ) automatically attaches to the title of any real estate that’s in the name of the judgment debtor, from whenever the judgment creditor records his abstract of the judgment until the debtor cries uncle and pays it off. : : An AJ acts to cloud not only the title to real property the judgment debtor currently owns, but any future property the debtor might come into title on also. Furthermore, the affected debtor cannot refinance nor sell any attached property without paying off the judgment. : : I think most people would agree that a recorded AJ is probably the worst type of cloud you could ever have against you. It effectively shuts you down indefinitely (since a judgment is renewable innumerable times) from personally participating in the fabulous game of “real estate”. : I was not very clear in my question. I can understand that the AJ would affect the person it was rendered against. What I would like to understand is, as a purchaser of a property at a trustee sale, do I need to be concerned about an AJ. In other words, will the AJ go with the property after the sale and be something that I as the new owner will have to deal with. That could be pretty nasty. I thought that one of the aspects of the Trustee Deed Upon Sale was that it was supposed to assure a marketable title? =•=•=•=•=•=•=•=•=•=•= Larry, a trustee’s deed is the equivalent of a quitclaim deed, and as such, would never be a hallmark of marketable title. That’s why you have to be so painstaking in doing your title record research at the most comprehensive source around—your county recorder’s office. The one rule you can rely on though is the old standard, that the foreclosure of a senior lien will wipe off title a junior lien, such as a trust deed, an abstract of judgment (AJ), an IRS lien, etc. So if the foreclosing trust deed is superior in priority to an AJ the AJ will be wiped off title via the foreclosure auction. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : I was under the impression that most judgements were against the individual and that they were not connected with the property and hence had no capacity to cloud the title. Am I wrong? : : : : Thanks, LarryVV : : : =•=•=•=•=•=•=•=•=•=•=•= : : : Larry, by operation of law, an abstract of judgment (AJ) automatically attaches to the title of any real estate that’s in the name of the judgment debtor, from whenever the judgment creditor records his abstract of the judgment until the debtor cries uncle and pays it off. : : : An AJ acts to cloud not only the title to real property the judgment debtor currently owns, but any future property the debtor might come into title on also. Furthermore, the affected debtor cannot refinance nor sell any attached property without paying off the judgment. : : : I think most people would agree that a recorded AJ is probably the worst type of cloud you could ever have against you. It effectively shuts you down indefinitely (since a judgment is renewable innumerable times) from personally participating in the fabulous game of “real estate”. : : I was not very clear in my question. I can understand that the AJ would affect the person it was rendered against. What I would like to understand is, as a purchaser of a property at a trustee sale, do I need to be concerned about an AJ. In other words, will the AJ go with the property after the sale and be something that I as the new owner will have to deal with. That could be pretty nasty. I thought that one of the aspects of the Trustee Deed Upon Sale was that it was supposed to assure a marketable title? : =•=•=•=•=•=•=•=•=•=•= : Larry, a trustee’s deed is the equivalent of a quitclaim deed, and as such, would never be a hallmark of marketable title. That’s why you have to be so painstaking in doing your title record research at the most comprehensive source around—your county recorder’s office. : The one rule you can rely on though is the old standard, that the foreclosure of a senior lien will wipe off title a junior lien, such as a trust deed, an abstract of judgment (AJ), an IRS lien, etc. : So if the foreclosing trust deed is superior in priority to an AJ the AJ will be wiped off title via the foreclosure auction. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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