When a debt collector files a lawsuit and obtains a judgment against you, a lien can be placed on your real property. Once a judgment lien has been placed on your home or other real estate, you cannot sell or refinance it without the judgment being paid out of the proceeds from the sale or refinance.
In Wisconsin, a docketed judgment is a valid lien against any real property owned by you in the county where the judgment is docketed. Additionally, the judgment lien is also a matter of public record and it will negatively impact your credit score. The lien is effective for 10 years, unless it is renewed for additional time.
How does a judgment lien work? The lien attaches to any equity in your home beyond what is owed on mortgages and other pre-existing liens. It is important to note that the Wisconsin homestead exemption protects the first $75,000 of equity in your home.
Can a judgment lien-holder foreclose on your house? Yes, but it rarely happens. Foreclosure is an expensive and lengthy procedure. Most creditors do not consider it cost-effective to foreclose on judgment liens unless it is clear there is a significant amount of equity in the property. Thus, judgment liens are usually docketed for the purpose of waiting to see if the homeowner sells or refinances the property.
If you would like to learn more about judgment liens, whether debt collectors are using improper collection methods or how bankruptcy can eliminate judgment liens, contact DeLadurantey Law Office.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handles bankruptcy matters for the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.