Selling a House With a Judgment Lien in California: What You Need to Know

Selling a House With a Judgment Lien in California: What You Need to Know

A judgment lien is placed on your property when a court awards money to a creditor in a lawsuit. Like a tax lien, a judgment lien must be paid at closing before you receive any proceeds. Here's how to sell a home with a judgment lien and why a cash buyer makes the process simpler.

What Is a Judgment Lien?

A judgment lien is a legal claim against your property for a debt that was decided in court. Common sources of judgment liens include credit card lawsuits, medical debt lawsuits, or personal injury settlements. Once a judgment is entered, the creditor can file a lien against your property. The lien must be paid at closing before you get any proceeds.

How Judgment Liens Affect a Sale

Like tax liens, judgment liens prevent conventional sales because lenders won't fund loans on properties with liens. Your only option is a cash buyer who can close without lender approval.

Selling to a Cash Buyer With a Judgment Lien

At closing, the judgment lien is paid from sale proceeds. If the sale price covers the lien, you get the remaining proceeds. If the sale price doesn't cover the lien, you're responsible for the balance (unless the creditor agrees to a settlement).

Get a Cash Offer

If you have a judgment lien on your property, call Alder Heritage Homes at (559) 281-8016. We buy homes with judgment liens, tax liens, and other title issues. Get a free cash offer within 24 hours and close in 7–14 days.