What happens when a judgment is obtained against a property owner?

When a judgment is obtained against a property owner, a judgment lien is placed on the property. This means that the creditor who obtained the judgment has a legal claim against the property, which secures the debt owed to them. The lien typically encumbers the property, meaning that the owner cannot sell or refinance the property without satisfying the lien, often through the payment of the judgment amount.

The judgment lien serves to protect the creditor's interests, ensuring that they have a priority claim to the sale proceeds of the property if it is ever sold, or that they will receive payment when the property is refinanced. A judgment lien does not automatically lead to the property being sold or restrict an owner's ability to lease the property. Instead, it creates a financial obligation that must be resolved by the property owner. The impact of the lien may also extend to other properties owned by the individual, not just the specific property linked to the judgment.