Judgment Lien Foreclosure In Massachusetts
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FAQ
If you have a debt judgment against you, you will not be able to obtain a mortgage until it is settled. Before you can close on escrow, you will have to settle the lien and show documentation for it.
Pursuant to the new law, a lender can opt to send a 90-day notice instead of a 150-day notice if it can certify that it has engaged in a good faith effort to negotiate a commercially reasonable alternative to foreclosure.
Judgements can become a first lien against a property. Lenders generally want to be first lien when it comes to mortgages. So yes, it will be deal breaker for most mortgage companies. I've seen mortgages get denied because of a $6000 judgement.
For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor records its lien.
If they are not timely renewed, they expire. In CA that is 10 years. However, when a judgment lien has been recorded against your property, it has no expiration date. This means that it is possible to no longer have a judgment against you, but still have a judgment lien on your property.
Yes, you can sell a house with a lien. However, Massachusetts requires all liens to clear before finalizing any property sale. This protects buyers from inheriting previous owners' debts or legal obligations.
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.
The creditor files the judgment with the registrar of deeds in any Massachusetts county where the debtor has real estate now or may have real estate in the future. For liens on personal property, the creditor files a copy of the judgment with the city or town clerk.
A refiled lien will terminate upon satisfaction of the outstanding liability, or not later than twenty years from the date when the assessment to which it relates was made or deemed to be made.
