Legal Question in Real Estate Law in California

I just obtained a property and found out after the fact that there are 6 Judgment Liens on the house. I obviously can't get a loan off the house without paying off those liens (which belonged to the previous owner). My question is: how can I go about having the creditors settle for less? I'm afraid since they know I'm now the new homeowner with equity they won't be as willing to settle for less. should I have an Attorney handle this for me or is there another alternative?

And, I'm in the State of California. The liens are from 2005-2009.


Asked on 9/05/11, 10:19 pm

4 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

As I think you know by now, prudent real estate buyers check the public records or purchase title insurance beforehand. All or part of your investment may have been sucked into a bottomless hole. Whether you or an attorney should attempt to negotiate settlement of the liens depends on your negotiation skills, if any. If you're not a professional negotiator, use an attorney. You may also want to consult an attorney to determine whether the seller concealed or misrepresented the facts about the title or marketability of the property you purchased.

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Answered on 9/05/11, 11:05 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I agree with Mr. Stone. In addition to considering how (and whether) to negotiate with the creditors, you should give some priority to considering whether and how to set aside your "obtaining" of the property (was it a purchase, an exchange, foreclosure or ?) on the basis of fraud, or bringing suit for damages. A seller under normal circumstances warrants marketable title, and any competently-prepared title report would show the judgment liens. Someone out there probably breached a duty and is liable to you. Also, if you acquired at a foreclosure sale, the trustee's title conveyed to you may be superior to the liens, a possibility you need to have investigated for you.

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Answered on 9/06/11, 8:33 am
Anthony Roach Law Office of Anthony A. Roach

Why didn't you purchase title insurance?

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Answered on 9/06/11, 12:28 pm
George Shers Law Offices of Georges H. Shers

In addition, judgment liens are good for ten years. bearing 10% simple interest, ad can be renewed every ten years. The seller, and possibly his broker, seem to be liable as the existence of the liens certainly goes as to the value of the property

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Answered on 9/06/11, 12:52 pm


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