Sometimes surprises can really ruin your day. You never know when a rogue judgment will pop up outta nowhere to slow down a closing. Sellers need to be sure to vet this out early and preferably before an offer is accepted. In the case of a death in the family it can be challenging to get this done, especially if it is the final settlement of an estate.
Judgements are something that can lurk in the shadows only to emerge on a preliminary title report. Judgements do not just follow the person named in the court documents but often are recorded against real property owned or co-owned by the defendant.
Judgments tend to stay around for 10 years or so and they can be difficult to remove even if the person is deceased or has settled the judgment in a bankruptcy.
Buyers should be prepared for potential delays when buying a home that is being sold on behalf of an estate. In the end the attorneys and title company will likely work it all out, but it might take a week or two longer and that can be challenging for buyers.
I have seen a few crazy deal in my day and judgements and lack of probate on estates are among the most troublesome. Buyers should not be discouraged when bidding on an estate sale, but just give your self enough time to compensate for any slowdowns during the closing process.
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