Does the buyer need to satisfy a judgment before purchasing foreclosed property?

Full question:

Property owned by Joint Tenants with right of survivorship was forclosed upon and judgment entered (Writ of Execution - Mortgage Foreclosure filed. Sheriff's Sale was scheduled and Stayed by Mortgee who charged off debtor's account. The property was abandoned and is in poor condition. Mortgee has agreed to satisfy $62,000 mortgage upon payment of $15,000 by Buyer. No equity in property and no money will be paid to Joint Tenants other than $10.00 consideration. There is an outstanding valid judgment against one of the Joint Tenants of $5,000 for credit card debt. There has been no attempt to execute upon the judgment. Is it necessary for the Buyer to satisfy the judgment prior to purchasing the property or will the judgment attach to the property and become the responsibility of the Purchaser; or does it remain the obligation of the Joint Tenant without effect to the property, as no consideration is being paid to either of the Joint Tenants?

• Category: Judgment Liens
• Date: 04/07/2025
• State: Pennsylvania

Answer:

A deed is a legal document that transfers ownership of real property. It must describe the property, identify the parties involved (grantor and grantee), and be signed and notarized by the grantor. A valid deed is effective when delivered and accepted, and it must be recorded in the appropriate county office.

There are two main types of deeds: warranty deeds and quitclaim deeds. A warranty deed guarantees that the grantor owns the title and that the property is free from encumbrances. In contrast, a quitclaim deed transfers whatever interest the grantor has without any warranties. Buyers typically take property subject to existing liens when using a quitclaim deed.

A judgment lien is established when a court grants a creditor an interest in a debtor's property due to a court judgment. If a judgment has not been enforced to create a lien, it does not attach to the property. Thus, if the property is sold before a lien is created, the judgment cannot be used to collect on property no longer owned by the judgment debtor.

In your case, since the buyer is paying only a small consideration and there is no equity in the property, the judgment against one of the joint tenants may remain their personal obligation. The buyer does not need to satisfy the judgment before purchasing the property, as it does not automatically attach to the property in this scenario.