A judgment lien is considered a nonconsensual lien. In most states, the judgment creditor—the winner of the lawsuit—must record the lien via a county or state filing. In a few states, if a court enters a judgment against a debtor, a lien is automatically created on any real estate the debtor owns in that county.

What type of lien is a judgment lien?

A judgment lien is a type of nonconsensual lien (a lien that attaches to your property without your agreement). It’s created when someone wins a lawsuit against you and then records the judgment against your property.

How are non mortgage liens enforced by creditors?

Most non-mortgage liens are recorded after mortgage liens (the reason being that lenders will not loan money if there is a judgment, tax, or mechanics’ lien recorded against the property) and therefore have a lower priority than the mortgage liens.

Can a judgment creditor execute on a lien?

Generally, a judgment creditor with a lien gets paid when the debtor sells or refinances the home. But if the creditor chooses not to wait for a sale or refinance, the creditor can execute on the lien by asking a court for permission to sell the debtor’s real estate.

Can a piece of collateral have more than one lien?

Often, a piece of collateral will have more than one lien. Real estate commonly has multiple liens: first and second mortgages, property tax liens, IRS liens and judgment liens can all attach to real estate. Business assets may be subject to multiple UCC-1 financing statements from multiple business loans.

What happens if I have a lien on my house?

If someone sues you and gets a money judgment against you, that judgment may become a lien on all real estate you own, depending upon your state’s laws. Property liens are paid in order of priority, which is generally governed by whichever lender recorded its lien first. For example, if you buy a house, the mortgage will be the first lien.