How to Clear a Judgment Lien from Real Estate
My question involves collection proceedings in the State of: texas
I am in the process of selling my home, back in 2006 a creditor filed a judgement against me and I was unaware this had been done. The creditor went out of business and the account was sold to a collection attorney, this attorney went out of business and the subsequent company also went out of business. I cannot find out who bought out the firm and I have tried contacting the company that bought out the original creditor and they have no record of this. ( I may add that this company was sold 3 different times) I can't sell my home until this judgement has been cleared or written off.( expires 9/2016) What can I do on my own to get this removed if there's no one to contact? What are the forms needed to present to the court for this? My home is a homestead.
Re: How to Clear a Judgment Lien from Real Estate
You have two basic options:
You can obtain a full release of the abstract of judgment from the creditor, or
You can file your own partial release of the abstract of judgment as it relates to your homestead.
To obtain a full release from your creditor you need the cooperation of your creditor. You can either settle the judgment in exchange for a release or you can send them a letter to demanding that they send you a release or sign a release you prepare because they are clouding title on your exempt homestead. Some creditors will ignore your demand or point you to the provision in the property code that allows for you to file your own partial release.
If you are eligible, a partial release may be obtained pursuant to Section 52.0012 of the Property Code. If you follow proper procedure, the partial release you obtain will release the abstract only as it relates to your homestead. If you try to sell or re-finance your homestead some title companies will want a full release, but others may find a partial release to be acceptable.
After obtaining either release, the release must be filed in the real property records in the jurisdiction where the abstract of judgment was filed. You should consider retaining a lawyer, because release language must be very specific in order to be effective. A small mistake could make a release ineffective.
The first option, obviously, is not available to you but the second seems like a reasonable alternative, and I think that you should hire an attorney and get it done right.