Judgment Liens and Home Financing
Judgment liens are court orders that require that the debtor turns over their home to a creditor for neglecting to fulfill his or her payment contract. Within this week's blog, the mortgage professionals at Associates Mortgage loan of Florida, Inc. will give you a short overview of judgment liens and discuss how they affect a borrower's capability to buy a home. If you have questions about purchasing a home in Orlando, Tampa, or Sarasota, FL, our professionals are pleased to help.
A judgment lien is really a order from the court against a person that mandates that she or he reach an agreement having a creditor to repay debt. A judgment lien can be put on the property as a security measure for the creditor. It allows a creditor to take control of the home when the owner does not make agreed-upon payments to the creditor. Once a judgment lien is positioned on a home, the house cannot be sold until it is removed. This is sometimes also referred to as a “cloud” on the title. When the full amount due to a creditor is paid off, the lien is discharged.
Purchasing a house having a Lien
Once a house adopts foreclosure, any liens on the property are removed. Which means that you can purchase a home that previously had a lien and went through foreclosure with no fears. Foreclosure sales really are a very popular option for a number of our clients simply because they can purchase homes well below their true market value.
Obtaining a Mortgage if You Have a Judgment Against You
If you have a debt judgment against you, you will not have the ability to obtain a mortgage until it is settled. Before you can close on escrow, you'll have to settle the lien and show documentation for this. You may get a judgment from the court showing this method has been completed, and you'll also obtain title insurance, which declares that you don't have open judgments against you.
Judgments can be released by fully repaying the debt. Other clients with severe debt also decide to seek bankruptcy relief, which leads to removing any judgment liens on your record. Filing for bankruptcy must only be looked at in serious situations by which other financial obligations have become overwhelming. Filing for bankruptcy may also negatively affect your credit rating for time, which might can even make it more difficult to acquire a mortgage for a few years.
We Offer Unique Solutions for Homebuyers
We work with clients in Orlando, Tampa, Sarasota, and nearby Florida neighborhoods. If you have questions regarding purchasing a home that has a judgment lien on it, or you possess a judgment against yourself, we are able to help. Our company specializes in helping clients with unique lending challenges. We use top lenders to provide competitive rates and flexible terms. Contact Associates Home Loan of Florida, Inc., to help discuss purchasing homes with judgment liens.