If an owner of an interest in real property has had a judgment obtained against the owner, this form addresses a release of that judgment lien.
Montana Release of Judgment Lien — Abstract of Judgment serves as an important legal mechanism used to release a judgment lien placed on a property. When a creditor is awarded a judgment against a debtor, they often place a lien on the debtor's property to secure their claim. However, once the judgment has been fully satisfied, the creditor must file a Release of Judgment Lien — Abstract of Judgment with the appropriate authority to remove the lien from the property's records. In Montana, there are two commonly used types of Release of Judgment Lien — Abstract of Judgment: Full Release and Partial Release. 1. Full Release of Judgment Lien — Abstract of Judgment: This type of release is filed when the debtor has fully satisfied the judgment amount along with any applicable interest and fees. Once approved and recorded, the judgment lien is completely lifted, ensuring that the debtor's property is no longer encumbered by the debt. This is beneficial for the debtor as it allows them to regain a clear title to their property, enabling them to sell or transfer it without any issues. 2. Partial Release of Judgment Lien — Abstract of Judgment: In some cases, a debtor may be able to negotiate a partial satisfaction of the judgment amount with the creditor. This could occur when the debtor pays a reduced but agreed-upon sum to the creditor, and both parties come to a mutual agreement. In such situations, a Partial Release of Judgment Lien — Abstract of Judgment needs to be filed. This document is necessary to release the lien partially and reflects the adjusted amount that has been satisfied. It allows the debtor to regain a partial clear title to the property, based on the agreement reached with the creditor. Both types of Montana Release of Judgment Lien — Abstract of Judgment are crucial in ensuring that the debtor's property rights are adequately protected after satisfying a judgment. Filing the appropriate release with the relevant authority, usually the county recorder's office, is essential for transferring ownership or refinancing the property. Therefore, it is crucial for both debtors and creditors to understand the different types of releases available and follow the correct procedures.
