Legal Question in Credit and Debt Law in California

Re: Judgments and Abstracts of Judgment

A recorded abstract of judgment is a wonderful thing. It creates a Lien on any real property owned or acquired by the judgment debtor. Its purpose is to provide notice to prospective buyers or transferees of the existence of the lien. A lien survives transfers of the property and even survives a bankruptcy (although other methods of collecting the judgment do not). A lien lasts forever, but prudent judgment creditors also renew their judgments every 10 years. What would happen is when the lien debtor dies or sells the property you will get a call from the title company requesting a payoff amount. You would then file a memorandum of accrued interest and costs with the court that issued the judgment, and send this to the title company. Be sure the abstract has a good address and phone number for you! For more, read Collect Your Judgment (nolo.com).

Re: Judgments and Abstracts of Judgment

Filing an application for renewal extends the judgment created by the abstract. However, you must record a certified copy of the application for renewal at the county recorders office in order to perfect the extension. Recording a new abstract may give you a lower priority to liens recorded after your original abstract.

You should also check to see if the debtor's property has changed hands since the time you recorded the original abstract. There are additional procedures you need to follow to extend the lien with respect to the new owner if a transfer has taken place. Failure to follow the proper procedures to notify the new owner could invalidate your judgment lien.

Re: Judgments and Abstracts of Judgment

You should renew the judgment, even though the lien is good forever. And make sure you follow the rules specifically. Don't wait until 9 years and 11 months and then make a mistake.