Full question:
I am selling my home and carrying the loan. The buyer has a judgement against them. Will this affect me in any way if they default on the loan?
- Category: Judgment Liens
- Date:
- State: Arizona
Answer:
The impact on you will depend on whether the buyer's name is on the deed before the loan is fully repaid. If the buyer holds the deed, any judgment liens against them could lead to a foreclosure on the property. In such cases, the home may be sold to satisfy the liens, with proceeds distributed to creditors based on the order of their filings with the county recorder's office. It's possible that later creditors may not receive any payment after senior creditors are satisfied.
Additionally, if the buyer has other debts, this may affect their ability to repay your loan. A judgment lien arises when a court grants a creditor an interest in the debtor's property due to an unpaid judgment. If the judgment remains unpaid, the creditor can place a lien on the debtor's property to secure payment. This may eventually lead to a sale of the property to satisfy the debt.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.