Legal Question in Civil Litigation in California

.Based on our experience in doing loss mitigation the simple answer is that the seller needs to cut a deal with the judgment creditor to get them to remove their lien and agree to the short sale. You might even be able to get the bank to give up some of the proceeds to get the deal done. I assume the property is worth what your client is paying or even less. The judgment creditor has nothing and if the house goes to foreclosure their lien will be wiped off the property so they are not in a very strong position. If they got pennies on the dollar they should be thankful because as I said they will get nothing if the house is foreclosed on. That would be the starting point of any negotiation. However if they knew your client was dying to get the house then they might hold out for more to try to spoil the deal. Bottom line is that you can't force them to do anything but it is in their interest to get something for their now worthless lien against this piece of property. If you are interested in help give us a call otherwise I hope this was helpful and best of luck to your client.

1. Yes.

2. Yes.

3. Not without the cooperation of the holder of the jugment lien. Either the judgment lien holder has to release the lein, or it has to be wiped out by foreclosure. Unless one of those things happens, the buyer would be subject to the lien. Bear in mind, the judgment lien is NOT a loan. It can be foreclosed on by Sherriff's Sale at any time (upon proper notice, etc.).

4. You could leave title in the seller, but that doesn't get you anywhere, because the seller's interest can still be wiped out by foreclosure.

5. Thoughts: My first thought is why isn't this seller in Bankruptcy? If he was, the sale would be through the Bankruptcy Court which would have the authority to void the judgment lien. It sounds, however, like you are too far along the deal to want to take time to go back to square one with a Bankruptcy filing. There may be some way to attack the judgment lien, but again, that would be a long process. Other than those two options Mr. Belli is right, you need to negotiate something with the holder of the judgment lien to get it released.

I have 22 years experience in real estate and title law and litigation, including six years as a vice-president and litigation counsel for the parent company of Fidelity National Title and Chicago Title. If I can be of service, let me know.