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Re: An abstract of judgment is like super glue...

Posted by Ward-CA- on October 24, 2001 at 8:10 PM

In Reply to: Abst Judgmt posted by Eric - CA on October 24, 2001 at 11:35 AM

: I have started using criis in order to "research" a property before actually going to the recorders office so that I can remove properties early by seeing other liens, mortgages, etc.

: I am now looking at a property that where the owner has several recorded items listed as abst judgmt. I have not looked at them yet. My question is that for those that arose before the person actually bought a parcel of property, do they attach to that property. There are lots of abst judgmts and if I don't have to worry about the ones before the grant deed/mortgage nor the ones after because they would be junior, then it makes life that much less complicated from a searching point of view.

: Please let me know

=•=•=•=•=•=•=•=•=•=•=•=

Eric, general liens are those liens that attach to property by operation of law, unlike voluntary liens like deeds of trust that require the property owner’s active involvement.

An abstract of judgment (AJ) represents a court judgment against a judgment debtor that has been recorded by the judgment creditor once the judgment became final (beyond appeal).

A recorded AJ gets its priority, like most other liens, from the date it was recorded. But unlike most other liens, it automatically attaches to any property in the county in the name of the judgment creditor at the time it’s recorded and any time thereafter, whenever the debtor comes into title. And it will stick to title like super glue until the judgment creditor records a satisfaction of judgment.

Judgments earn the legal rate of interest in CA of 10% per annum and are good for 10 years and renewable an unlimited number of times.

Thus an AJ will effectively put an armlock on an individual’s ability to buy, refinance, or sell property until the judgment is paid. Unless of course, if the individual chooses to hold title in a corporation, limited partnership, LLC or title holding trust rather than her own name.

So, in summary, yes you have to worry about an individual’s judgments that came into being and have been recorded in the county prior to that person going into title.

However, such cases are rare since most sales are done under the aegis of title insurance and thus will appear on the preliminary title report for all (lender, title company, and seller) to see before title passes and before loans are made. For the deal to go forward the judgment would have to be paid.

A foreclosure sale of a senior lien will wipe an AJ of the title of the foreclosed property, but the AJ will still exist as either an unsecured judgment or as a secured judgment against other property in the county in the debtor’s name.

Hope this helps.


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