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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Dealing with judgments... Posted by Ward-CA- on July 14, 2003 at 9:03 AM In Reply to: Fraud Judgment posted by Cary on July 11, 2003 at 1:15 PM : Ward, : Since you are an all-knowing real estate entrepreneur, I was wondering if you can answer a trivia question on fraud judgments that have attached onto a house. : From what the debtor has told me, she says that fraud judgments are wiped off and cannot be collected after 20 years. She also tells me that the creditor on this fraud judgment can do a forced sale if there is at least $50K in equity in the house. Do you know if those rules are specific to her judgment per the documents, or is that an overall fraud judgment rule? Do you know where I can learn more about this topic? : Now assuming that the above is correct, the house will not appreciate beyond $50K in equity, and she would like to lease the house out until the 20 years expires, do you know if that would trigger the forced sale since the debtor is no longer the primary occupant? : Thanks for your help. : Cary -=-=-=-=-=-=-=-=-=-=-=-=-=- Cary, Here in CA a judgment is good for ten years and renewable over and over again beyond the initial ten years, until paid. Judgments in this state bear the legal rate of interest of 10% per annum. A judgment creditor can pursue a judicial foreclosure of a judgment debtor’s real property. However, if the property is her home then she’s entitled to a homestead exemption of about $65K (that could possibly double if she’s married and elderly). That means the judgment creditor could not proceed with their judicial foreclosure unless they could prove to the court that the total of all the title record debts, and the homestead exemption amount, are less than the current fair market value of the property. A judgment that is based on a fraud being committed by the judgment debtor cannot be discharged via any subsequent bankruptcy filing by the judgment debtor. If an abstract of judgment has been recorded for more than 90 days it will be considered a secured lien by the bankruptcy court, and like most secured liens, not dischargeable by bankruptcy. I can’t tell you how judgments specifically apply in your state, but you could learn a lot more about the subject by visiting your local law library and asking the reference librarian for books on the subject. Generally, once a judgment has been rendered by a judge the judgment creditor needs to wait until the debtor’s appeal rights have expired. In CA the debtor needs to appeal the judgment levied against her within 30 to 40 days of the entry of judgment. After the appeal period has run the judgment creditor can get an AJ (Abstract of Judgment) issued by the court and record the AJ in the county recorder’s office. The AJ is a general lien, and as such, automatically attaches to the title of any real property in the debtor’s name for the following 10 years. During that time period the judgment acts to block the debtor from buying, selling or refinancing any real property in her name in that county without curing the AJ first. If the AJ is still extant after nine years the judgment creditor can file a request with the court for a renewal of judgment for another ten years. Such requests are routinely approved. Hope this helps. Follow Ups: Re: Dealing with judgments... Cary 4:18 PM, 07/29/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Since you are an all-knowing real estate entrepreneur, I was wondering if you can answer a trivia question on fraud judgments that have attached onto a house. : : From what the debtor has told me, she says that fraud judgments are wiped off and cannot be collected after 20 years. She also tells me that the creditor on this fraud judgment can do a forced sale if there is at least $50K in equity in the house. Do you know if those rules are specific to her judgment per the documents, or is that an overall fraud judgment rule? Do you know where I can learn more about this topic? : : Now assuming that the above is correct, the house will not appreciate beyond $50K in equity, and she would like to lease the house out until the 20 years expires, do you know if that would trigger the forced sale since the debtor is no longer the primary occupant? : : Thanks for your help. : : Cary : -=-=-=-=-=-=-=-=-=-=-=-=-=- : Cary, : Here in CA a judgment is good for ten years and renewable over and over again beyond the initial ten years, until paid. Judgments in this state bear the legal rate of interest of 10% per annum. : A judgment creditor can pursue a judicial foreclosure of a judgment debtor’s real property. However, if the property is her home then she’s entitled to a homestead exemption of about $65K (that could possibly double if she’s married and elderly). : That means the judgment creditor could not proceed with their judicial foreclosure unless they could prove to the court that the total of all the title record debts, and the homestead exemption amount, are less than the current fair market value of the property. : A judgment that is based on a fraud being committed by the judgment debtor cannot be discharged via any subsequent bankruptcy filing by the judgment debtor. : If an abstract of judgment has been recorded for more than 90 days it will be considered a secured lien by the bankruptcy court, and like most secured liens, not dischargeable by bankruptcy. : I can’t tell you how judgments specifically apply in your state, but you could learn a lot more about the subject by visiting your local law library and asking the reference librarian for books on the subject. : Generally, once a judgment has been rendered by a judge the judgment creditor needs to wait until the debtor’s appeal rights have expired. In CA the debtor needs to appeal the judgment levied against her within 30 to 40 days of the entry of judgment. : After the appeal period has run the judgment creditor can get an AJ (Abstract of Judgment) issued by the court and record the AJ in the county recorder’s office. The AJ is a general lien, and as such, automatically attaches to the title of any real property in the debtor’s name for the following 10 years. During that time period the judgment acts to block the debtor from buying, selling or refinancing any real property in her name in that county without curing the AJ first. If the AJ is still extant after nine years the judgment creditor can file a request with the court for a renewal of judgment for another ten years. Such requests are routinely approved. : Hope this helps. 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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