Purchasing or owning a real estate property is a significant investment, and it can be devastating to have a judgment placed on your property. However, when you have a judgment on your real estate property, it is important to take the necessary steps to protect your investment and avoid losing it.
In this blog post, we will discuss the steps you can take to handle a judgment on real estate property and protect your investment.
Understand the Judgment
The first step in handling a judgment is to understand what it means. A judgment is a legal order that requires you to pay a specific amount of money to the creditor. If you fail to pay the amount, the creditor has the right to place a lien on your property, which gives them the right to collect what you owe them if you were to sell or refinance your property.
Make sure you fully comprehend the judgment, its terms, and how it impacts your property ownership.
Contact the Creditor
The next step is to communicate with the creditor, such as Mayflower Judgments, and find out their stance on the judgment. It may be possible to negotiate a payment plan to pay off the judgment, or they may be willing to release the lien if the debt is paid off. If your property is worth less than the amount of the lien, you may be able to negotiate a short sale or deed in lieu of foreclosure.
Seek Professional Help
Dealing with a judgment on real estate can be complex, so it is essential to seek professional help. Consult a real estate attorney who can guide you through the legal aspects of the judgment, advise you on negotiations that could help relieve the lien on your property, or design a strategy on how to deal with such judgments affecting your investment.
Explore Your Options
If you are unable to negotiate a satisfactory solution with the creditor, consider exploring other options such as filing for bankruptcy, as this may give you the ability to discharge your debts completely. Be aware of the consequences of filing for bankruptcy, such as long-term effects on your credit score and increased difficulty in obtaining financing in the future.
