Judgment liens on a home or other property

A judgment lien is a legal claim against a debtor's property for the amount of a judgment. It does not take the property; it rides on it, so the debt has to be paid when the property is sold or refinanced, and in some cases the creditor can ask the court to force a sale.

How a lien attaches

In most states a judgment becomes a lien on real estate when the creditor records it with the county where the property sits, usually with the county recorder or the clerk of the court. Some states make a judgment a lien automatically on property in the county where it was entered. Liens on vehicles, bank accounts and other personal property follow different procedures, often a levy through the sheriff.

A lien generally lasts as long as the judgment can be enforced, and is renewed when the judgment is (see how long a judgment lasts). For judgments the United States holds, federal law sets the lien at 20 years, renewable once (28 U.S.C. 3201).

What a homestead exemption protects

Most states protect some of the equity in the home a person lives in from judgment creditors, through a homestead exemption. State laws vary widely: most cap the amount protected, a few protect the whole home, and some set limits by the size or type of property or the owner's age. Your state's exemption statute sets the rule; a legal aid office can tell you how it applies to you.

Getting a lien released

Once the judgment is paid or settled, the creditor should file a release or satisfaction of judgment, and the release should be recorded where the lien was. Ask for a copy, and check the county's records afterward: a lien that was paid but never released can still hold up a sale years later.

Liens you did not know about

If you find a lien from a case you never heard of, look up the case and read default judgments.