Buying a property with judgements?

Question

I’m currently trying to buy a house with 76k of judgements against the owner. She owes 89 on the Mortage I’m offering 95k.... she owns another property... is it possible to transfer those judgements to that property?

Pat L. · Answer

Up here depending on the type of lien/judgment it can be done with the help of a good attorney who knows what he is doing. State/IRS liens are tougher to negotiate but it may be worth a try. Then have your attorney confirm clean title through a title company.

We are working on one up here now but no movement yet.

We are working on one up here now but no movement yet.

Pat L. · Answer

We just finalized the one I mentioned earlier where they had Medical etc liens to the tune of $48k. We took the property back DILO as we held the original note from 2005. Luckily the liens did not attach & we have clean title on a home worth >$75K. It was their idea to take this course of action as selling it & then paying down the liens would have left them with nothing & the thought of moving was just too emotional for them.

We paid the tax arrears & all legal/filing costs etc & they are just content to rent from us. They are over 70 & both in poor health so at least they can stay in the home.

Chris Seveney · Answer

my recommendation is don’t waste anymore time on this one and let it go.  She can satisfy the judgements any way she wants but what makes you think that someone that accrued $75k in judgements just woke up one day and was like / geez maybe I should pay them. The borrower is not going to pay the judgements. Your best bet is to wait till it gets foreclosed on and then buy it at auction

Greg Gerken · Answer

@Chris Seveney what happens if the appraisal comes in lower than what she owes, which I now believe it will. So she owes 89... the appraisal comes in at 70 (for example) and she has 75k worth of judgements. Could she liquidate her other property to satisfy those judgements on the first property?

Alex Deacon · Answer

@Greg Gerken its going to depend on what the judgments are and how easily they can be either removed or negotiated down. Your time and effort may be spent wisely elsewhere. This one may be an uphill battle. If you have a copy of the title search send it over and I can take a quick look. We buy a lot of properties in the Pittsburgh market with clouds on title.

Chris Seveney · Answer

First, you will not be able to get clear title until the issue is resolved. If its in PA I have a great attorney who might be able to assist. Few questions I have is who are the judgements from? A county or a company? If its the jurisdiction they most likely will not waive one. If its a company you can try and negotiate them. They will also most likely want to see an appraisal as if they think its worth $120k then they won't let it go for $95k. In most instances these are a lot of headache and rarely turn out in your favor.

Tom Gimer · Answer

Those judgments are already attached to both properties if they are in the same county.

You (well, actually the seller) can negotiate a release from the judgment lien(s) as to the property you are purchasing with a partial payment to the judgment creditor(s) based upon the equity position.

Bob B. · Answer

@Greg Gerken Not a good situation unless the property is worth north of the mortgage and judgment combined. As Brian said, the judgment will need to be paid before you get clear title.  I assume you aren't paying cash and the closing attorney would catch the judgment.  You might luck up and get the creditor to discount the judgment.  It never hurts to ask.

Brian Ploszay · Answer

Are the judgements personal or are they a lien on the property?  If they are a lien on the property, they will have to be satisfied.  Consult a real estate lawyer for accurate advice.

Buying a property with judgements?

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