Real Estate Terms Dictionary
Definition of 'Judgment Lien'
A judgment lien is a type of interest placed against the property or assets of a debtor and which appears as outstanding at the time a foreclosure is scheduled for auction.
What is a Judgment Lien:
The incidents that can produce a judgment lien can be varied. Generally speaking, any incident that involves a lawsuit can generate a judgment lien. For example, an accident.
The injured party might file a lawsuit asking for damages from the other party. If the other party's insurance does not cover the damages, a judgment lien can be placed against the debtor's assets until the debt is paid.
In real estate, when a lawsuit appears as a result of a non-paid debt, a judgment lien can arise. The court can grant the creditor an interest can use the debtor's property or business if after a certain period of time the debtor still hasn't paid off the debt.
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.