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Can judgment from House A be used to get a foreclosure on house B?

Henderson, NV |

House A was foreclosed on. The bank also got a judgment on an equity loan taken on house A. I bought house B and have a homestead. Can bank foreclose on house B because of judgment from house A.

Attorney Answers 3


  1. When a creditor obtains a kid gent, it can 'record' the judgment and create a lien against any real estate you own now or in the future. A homestead declaration blocks judgment creditors from foreclosing on a judgment lien if you have less than $550k in equity in your house.

    So the answer is No, they can't foreclose as long as you use the house as your primary residence and have a homestead declaration recorded on that property. But when you try to sell the house B, you'll have to pay all liens, including the judgment lien, unless you get the judgment creditor to agree to release the lien without full payment (which usually requires you paying as much equity as you would receive up to the full judgment lien balance.)

    Regards,
    William Devine, II
    Rainey Devine

    I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.


  2. The homestead that was recorded protects house B from the forced sale of the property. It does not invalidate the lien that was created when the court judgment was recorded. The lien will continue to grow with interest for every day that passes and when house B is sold or refinanced, the lien plus the interest will have to be paid for any transaction to go through. Judgment liens can be avoided in bankruptcy if you can qualify, meaning that the judgment lien could be removed. Hope this perspective helps!


  3. The homestead exemption will protect house B if it has less than $550K in equity. Depending on your situation, you may be able to strip the judgment lien through bankruptcy.

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