Legal Question in Real Estate Law in Texas

Legal Action

Recently, we have won a case in small claims court against a house next door. We are going to file an abstract of judgement against the owner. The case was filed in October, 2006. The case was hear and ruled upon Jan. 26, 2007. The owner was in court. Now I am finding out that the property has been taken over by a lending company on 12/11/06. Will the abstract of judgement need to be paid by that company?


Asked on 2/08/07, 3:24 pm

2 Answers from Attorneys

Charles White Charles G. White

Re: Legal Action

The answer to your question is maybe yes and maybe no.

If the lending company foreclosed on the property because of a prior lien, it means that any lien created by your abstract of judgment has been wiped out.

If the lending company took a deed to the house in lieu of going through foreclosure, then your abstract of judgment might still be good.

Generally a lending company has sufficient knowledge to know that a foreclosure will wipe out subsequent liens, but it is possible that they might have taken a deed in lieu of foreclosure.

If the property was homestead property, no abstract of judgment lien arising out of small claims court will attach to homestead property. Further, an abstract of judgment from any district court will not create a lien on a homestead (subject to certain limited exceptions such as owelty liens in divorce cases, and certain other exceptions which is another long story).

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Answered on 2/08/07, 4:01 pm
Cheryl Rivera Smith The Smith Law Firm

Re: Legal Action

For several reasons, the answer is probably no. However, have heart - the judgment follows the individual, not the property, so, if it is ever important for the judgment debtor to clear their credit, they may pay in the future. Be sure to renew your judgment at 10 years and you can keep it effective as long as you don't miss the filing deadline each decade.

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Answered on 2/08/07, 7:36 pm


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