What is judgement?
A Judgement is broadly defined as a formal decision made and issued by a court of law, a decision which relates to specific claims and dictates rights or duties of the parties involved in the suit, in order to resolve the claims in question. The subject of the lien (what the lien is placed on or issued against) can be an individual or a business.
What is a judgement in real estate?
In real estate, a judgement is most often associated with a lien (Judgement Lien) and it gives the creditor rights to take possession of a debtor’s fully- or partially-owned real property and use it to obtain whatever the debtor has failed to pay or provide.
For example: a debtor fails to pay the creditor. The creditor then files suit against the debtor. If the court finds that the debtor’s claim is valid, the court may order a judgement lien. If the subject of the claim was a loan taken out against a property, the judgement lien gives the creditor the right to seize the debtor’s property and sell it, in order to recuperate what the debtor owes on that loan.
What is a release of judgement?
The court does not collect the debt on behalf of the creditor, but usually grants a limited amount of time in which the debtor may resolve the suit without loss of property (Judgement Expiration).
If the debtor manages to pay what is owed before the judgement expires, it is possible to obtain a satisfaction and release of judgement document that confirms it, from the creditor. This document usually closes the case against the debtor and clears any encumbered possessions of liens.
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