A judgment lien is a lien (an amount of money that has been secured by any collateral) that is generally placed against a home or any property belonging to the owner of the property. A judgment lien can be placed against a home, a bank (in this case it’s called a bank levy), as well as personal assets such as cars.
The generally a judgment lien is the last step that a creditor has taken in order to enforce its judgment against a debtor. At first glance it may not seem like a big deal that you have a lien against your house, after all you probably already have one or two mortgages against your property and with today’s declining property values that is barely any equity in most people’s homes. However, what happens if you want to refinance your home to either take some money out or simply just lower the interest rate (interest rates today are at an all time low)? This is where a lien against your home can create a sizeable financial burden for the home owner.
A simple $4,000 judgment lien can grow to tens of thousands of dollars over the years (the interest rate on these liens can be as much as 15%). For example a simple $4,000 lien can grow in interest to over $10,600 in just over 8 years. These liens do not just disappear, they will be paid in full when the home owner wants to refinance or even sell their property.
At SM Law Group, our attorneys are experts in removing these liens not only from your properties but getting rid of them for good, so in a few short years you will have the option of selling or refinancing a property without having the extra burden of a judgment lien that was placed from an old credit card debt or a car repossession.