What happens when there is a judgment lien against just one of the property owners?
The lien holder would only be entitled to that portion of the sale proceeds the judgment debtor is entitled to. Hopefully, this would be enough to satisfy the judgment. If not, hopefully the creditor would take that portion and give a release of lien as to the property begin sold. However, the judgment creditor could refuse tor release the property unless the entire judgment is paid in full.
Attorney Tom Olsen: Diane, you're on News 965. Go ahead.
Diane: My mother-in-law had recently passed away. Her home had been left to my husband and three siblings. In the process, we found that we had a $39, 000 judgment against us that we were not aware of. My question is, in the sale of the home in this judgment, are they entitled to any portion of the sale of the home that is not part of our portion? Does that makes sense?
Attorney Tom Olsen: Well, first of all, when your mom died, it would have required a probate process to get it out of her name and into the names of the kids. Was that probate done?
Diane: Yes that's how we found -
Attorney Tom Olsen: Okay. Then the probate was done, the property was titled into, I think you told me three names, right?
Diane: Four total.
Attorney Tom Olsen: Four total. Diane, you own a one quarter interest. It is not your homestead therefore it is subject to your creditor claims. Therefore if you sell it, they will take your one quarter proceeds as much as it's necessary to pay that judgment off. Your question is, can they take more than your quarter percent? The answer is no.
Diane: That's what I thought. It's been the [unintelligible 00:01:19] between my husband and I. You answered my question. That's good news.
Attorney Tom Olsen: You sound relieved even though they're going to take your money Diane. I'm so sorry about that but no only your share of the real estate would be subject to your creditor liens.