It’s a scenario that affects homeowners every day when selling their homes. You’ve got a perfect little bungalow, and you’ve found a buyer who has fallen completely in love with it. You’re ready to move forward with your sale so you can focus on your next home as well. But then you learn there’s a problem with your title from a past judgment, and the sale stalls.


Fortunately, our team of title closers at Liberty Title in Minnesota is ready for these kinds of hitches that can arise during the sale of your home. Read on to learn how a judgment can affect your title and how we can help.


Judgments and Your Title

When a homeowner owes a creditor, that creditor has the right to take them to court for their money owed. If a judgment is awarded, the homeowner can be required to pay the creditor and a lien can be placed on their property.


Once a lien is placed on a property, the homeowner will need to repay the existing debt before he or she can transfer the property. Most mortgage lenders will not close on the home’s sale if there’s an unpaid judgment. That’s why it’s important to know if you have any liens on your property before you sell it.


Getting Your Title Clear

In order to move ahead with the sale of your home or property, you’ll need to address your lien from a judgment. You’ll need to get in touch with your creditor and work out a payment plan or settlement.


Once this agreement is reached, you can ask the creditor to remove the lien against your property. You’ll need a release of judgment and to provide any documentation needed during the closing process. A title abstractor will determine if there are any existing liens on your property when preparing your title commitment.


These types of liens can interfere with your sale:

●        Mechanic’s lien

●        Tax lien

●        Consensual lien


Minnesota Title Insurance Protection

Judgments can affect the title of your home, but with the right title abstract team, they don’t have to keep you from selling your property. As a seller, it’s important to go with a closing preparation team that will explain every document and walk you through every step of the process.


At Liberty Title in Minnesota, we love helping Minnesota buyers and sellers through a smooth closing. Call us at 763.494.0340, or contact us to find out more about how we can help your sale go smoothly.