You can find many cases, in which a buyer has been working very hard to save up enough money to make the down payment and secure their dream property. Rest assured you do so, buy the house, and even move in. After a few months, for some reason a lawsuit has been filed against you and you lose the case. Your lawyer will tell you that the opposition party can now file a lien against your newly purchased house. This is what an abstract of judgment is. Further here you will learn more about the definition and uses of abstract of judgment.
Also known as a property lien, abstract of judgment can be defined in a few ways. Here are some of the more popular definitions.
i. A lien issued against any real property you might own in a specific county. This is not related to any mortgage you might have on the property. Instead, it is when a person loses a court case and the judgment is against him. A written summary of the same is made, stating the total court costs of the case, the interest (if any) they have to pay and anything else one might have to do according to the judgment. If this is not paid, the creditor can place a lien on any of the properties the debtor owns in that same.
ii. A specific cost is incurred by the losing party in any court case. In addition to the overall costs of the creditor, they also have to pay an interest amount (if any) and other things the court has ordered them to do. This is money owed from the losing party to the winning party. However, in any case where the debtor lapses to pay this amount, the creditor can instead place a lien on any of the properties owned by the debtor in the same county.
As is quite evident from the definitions, there is not many uses for this for the debtor. However, the creditor can truly benefit from such a law. Here mentioned are some uses of the same.
With Abstract of Judgment, Lawthe creditor does not have to go through the hassle of filing complaints about not getting payments. They can simply seize the property that is closest to the evaluation and get their money back.
This is a recorded document, so there is no way for the debtor to find a way through this. While with most other negotiations, the debtor can simply say that the agreement never took place, with a document like abstract of judgment, it is compulsory by the court of law for them to pay back the creditor.
