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judgment lien

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johnny case

Junior Member
What is the name of your state (only U.S. law)? Mn

Concerning an evicted tenant that does not have any property or assets now, when I docket a judgment, does a future spouse get held accountable for paying off the lien if they want to take out a loan (house or car)? Would I see anything if they just used the spouses name in the loan? Thanks
 


OK-LL

Member
What is the name of your state (only U.S. law)? Mn

Concerning an evicted tenant that does not have any property or assets now, when I docket a judgment, does a future spouse get held accountable for paying off the lien if they want to take out a loan (house or car)? Would I see anything if they just used the spouses name in the loan? Thanks
A judgment and subsequent order for garnishment is effective only against the named defendant. You cannot garnish wages or bank accounts of 3rd parties who were not a party in the original suit. Whether a creditor requires a spouse's debt be paid off before lending is subject to the lender's standards. Typically a mortgage lender will require all pre-existing debts of the borrower(s) be paid before closing the loan; auto financing lenders typically do not require it.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? Mn

Concerning an evicted tenant that does not have any property or assets now, when I docket a judgment, does a future spouse get held accountable for paying off the lien if they want to take out a loan (house or car)? Would I see anything if they just used the spouses name in the loan? Thanks
You may be confusing the personal liability for the payment of a money judgment with that of the effects of establishing the judgment as a lien upon real property.

Lien of judgment. By virtue of Section 548.09 of the Minnesota Statutes the act of docketing a money judgment - PLUS recording it pursuant to sections 508.63 and 508A.63 - serves to create a lien in the amount unpaid upon all real property in the county then or thereafter owned by and registered in the name of the judgment debtor. Its duration being ten (10) years.

(Note that in Minnesota the lien affects land or real property only, not the judgment debtor's personal property. Also that the lien attaches to the land not the person. And the creation of the lien does not bar the judgment creditor from enforcing the judgment by other means - levy of execution, garnishment, etc..)

Satisfaction of lien. As in all states there are statutory procedures for enforcing such a judgment lien by foreclosure and sheriff's sale. However, in order to benefit from the process the lien holder would need to be prepared to satisfy all other liens against the property of record having priority in time. Which, unless there is adequate equity, is why they are seldom foreclosed.

As a practical matter it is generally better to sit on the lien in hopes that the owner will find a buyer willing to assume the lien and have it satisfied in a closing. Or, as your post suggest the owner wishes to refinance an existing mortgage - which as mentioned could not be accomplished without the judgment lien being discharged in the process.

Clearly no one other than the named judgment creditor(s) bear(s) personal liability, including a wife or husband.
 

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