An Abstract of Judgment is a document that creditors file with the real property records to create a lien on certain property that you own. This is not a document that is automatically filed if you have a judgment against you. The judgment creditor pays a fee and files the document.
The main problem with an abstract of judgment is that it will cloud title on your homestead. While it is true that most judgment creditors cannot forcibly sell your home in Texas, an abstract of judgment may still prevent the sale or re-finance of your homestead.
If you are trying to sell or re-finance your home, see our article on obtaining a Partial Release of Judgment.
The abstract of judgment essentially puts the world on notice that there is a judgment against you. A title company will find this document typically when searching public records. As a result, it is critical that you obtain a release of the abstract of judgment.
If the abstract is hindering the sale of your homestead, the creditor is supposed to provide you with a release. There is a procedure for obtaining a partial release without needing the creditor’s involvement. This is the Partial Release of Judgment procedure.
Typically you will only obtain a full release if the judgment is settled or paid in full. Sometimes, you may need a full release if you are trying to obtain a loan or mortgage and the lender will not approve you without it.
We have obtained many full and partial releases of judgments. If you have a judgment against you, contact us today.