Will a money judgement against real property survive after the property sale if not enough proceeds in the transaction satisfy the judgement in full?

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Will a money judgement against real property survive after the property sale if not enough proceeds in the transaction satisfy the judgement in full?

The property is in NY State and I need to know if a judgement lien will still be valid upon the property after it is sold to another person where the price paid did not allow for full payment to creditor to satisfy the judgement in full.

Asked on October 26, 2010 under Real Estate Law, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

That all depends.  Is the judgement against the property or is it a lien filed against the property for a judgement on a person?  In other words, someone gets a judgement against you and starts filing the judgement against your property in order to collect.  It is not the same as a judgement against the property for taxes, utilities, etc.  Yes, it can have the same effect but it is different.  If the judgement is not satisfied then I think that they could come after you for the rest.  So here is what I would do.  I would call the lien holder and advise that you intend on trying to sell the house and to satisfy the lien.  You would like to pay off everyone that you owe.  You want them to reduce the judgement and take X amount in satisfaction of the whole. This way they can be paid off now and not wait to collect the whole later on.  Most people would take the money and run.  If they agree GET IT IN WRITING and make sure that the satisfaction is filed for the entire amount.  Good luck. 


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