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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Abstracts of judgment are tenacious... Posted by Rey in LA on March 16, 2004 at 4:27 PM In Reply to: Abstracts of judgment are tenacious... posted by Ward-CA- on March 15, 2004 at 9:20 PM : : Are all civil judgments that are recorded againts a homeowner attatched to the house? In this case I have a possible deal with a man who has lost several civil suits totalling over $300,000 due to a business he ownes. All are recorded at the recorders office and his house is now in default. He owes $356,000 on a house worth $600,000. I don't see anywhere on the recorded judgments saying they are attatched to the house. Can he sell his house for $356,000 on paper? Is there a way to do this deal? : ================ : Jason, : Yes, all recorded abstracts of judgment (AJ) automatically attach to the title of all real property owned by the judgment debtor, in the same county where the AJ’s were recorded. : AJ’s are general liens rather than specific liens. Therefore they don’t have to specify what property they’re against since they automatically attach to ALL real property titled in the judgment debtor’s name in the county. : If your man owes $356K in mortgages or trust deeds and another $300K in AJ’s, then I’d say this deal sucks if his property is only worth $600K. : Here in CA. judgments run for 10 years and are renewable indefinitely. They automatically bear a 10% legal rate of interest. Jason: I agree with Ward. It is too bad that this person did not get proper advice from his CPA, attorney or other "financial advisors." He would not be in this "pickle" if he had set up a NM LLC and filed a "Friendly Lien" on his home PRIOR to all his troubles. I am amazed at the number of cases and situations that mirror that fellow's predicament. Rey in LA Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Are all civil judgments that are recorded againts a homeowner attatched to the house? In this case I have a possible deal with a man who has lost several civil suits totalling over $300,000 due to a business he ownes. All are recorded at the recorders office and his house is now in default. He owes $356,000 on a house worth $600,000. I don't see anywhere on the recorded judgments saying they are attatched to the house. Can he sell his house for $356,000 on paper? Is there a way to do this deal? : : ================ : : Jason, : : Yes, all recorded abstracts of judgment (AJ) automatically attach to the title of all real property owned by the judgment debtor, in the same county where the AJ’s were recorded. : : AJ’s are general liens rather than specific liens. Therefore they don’t have to specify what property they’re against since they automatically attach to ALL real property titled in the judgment debtor’s name in the county. : : If your man owes $356K in mortgages or trust deeds and another $300K in AJ’s, then I’d say this deal sucks if his property is only worth $600K. : : Here in CA. judgments run for 10 years and are renewable indefinitely. They automatically bear a 10% legal rate of interest. : Jason: : I agree with Ward. : It is too bad that this person did not get proper advice from his CPA, attorney or other "financial advisors." : He would not be in this "pickle" if he had set up a NM LLC and filed a "Friendly Lien" on his home PRIOR to all his troubles. : I am amazed at the number of cases and situations that mirror that fellow's predicament. : Rey in LA 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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