Judgment Lien On Real Property In Houston
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However, generally speaking, the primary ways for a secured party to perfect a security interest are: by filing a financing statement with the appropriate public office. by possessing the collateral. by "controlling" the collateral; or. it's done automatically when the security interest attaches.
A perfected lien is a lien that has been filed with the appropriate filing agent in order to make the securing interest in an asset binding. A lien is used in secured loans and integrated into the lending contract. Liens can also be involved in other special situations.
Generally, to file a judgment lien, an abstract of judgment must be issued by the justice court. Some justice courts have a form available on their website to request an abstract of judgment.
For a lien to be valid and legally enforceable, the creditor must usually file some type of financing statement in a government office or other publicly accessible database. A lien that is properly recorded is called a perfected lien.
A lender must perfect its lien by filing it with the appropriate agency or authority, such as in the county land records. If a lien is "perfected," the creditor (such as a mortgage lender) has established its priority in the encumbered property regarding other creditors.
Verify the Lien: Ensure the lien is valid and check for any errors that could invalidate it. Satisfy the Judgment: Paying the debt in full is the most straightforward way to remove the lien. Obtain a satisfaction of judgment from the creditor and file it with the court.
In Texas, a judgment lien can be attached to real estate only (such as a house or land).
The judgment lien is not going to impact a homesteaded property so the mortgage lender would be able to obtain a first lien on your property. So, as long as you otherwise qualify for a mortgage, the judgment lien should not be a problem.
And a homeowner may find it difficult to sell any property that has a lien against it. Prospective buyers may avoid a property to which someone else has a claim.
