Buyer has Judgments, is my title bad now? - Posted by Big John

import · June 19, 2009, 8:37pm

Posted by John Merchant on June 19, 2009 at 22:26:14:

An abstracted (recorded) court judgment has a lien order just as would a mortgage or deed of trust, and if it post-dated your recorded (was it recorded?) REC with your buyer, then those Js are inferior to your buyers’ rights.

I’m thinking you’ll have to formally, as per your state law, do a “contract forfeiture” and take a court Judgment to take title to that RE unencumbered by those subsequent liens on that property.

While it might be possible for you to get a Deed in Lieu of Forfeiture, I’d suggest you go talk to a local title officer and get his/her advice of how it’d be best for you to regain title so as to keep that property UNencumbered.

In many states it’s a simple matter, following the form that’s set out in its statutes to do a REC Forfeiture and no lawyer is necessary, therefore not prohibitively expensive.

What state’s the RE in?

import · June 19, 2009, 8:37pm

Buyer has Judgments, is my title bad now? - Posted by Big John

Posted by Big John on June 19, 2009 at 20:37:07:

A buyer has stopped paying on my Contract for Deed with them, but I notice they have a couple of judgments since they bought it on terms from me two years ago. They’re moving and have agreed to Quit Claim the property back to me. But will the judgments now encumber my property? Is it necessary to “Cancel” the contract formally through the courts–costly–to avoid this happening, or will the Quit Claim Deed be sufficient to keep the judgments from affecting my title?