I own a vacant lot in Florida and sold it with a mortgage and note. The Buyer had two outstanding credit card judgements prior to the purchase. My title agent said they did not attach to the mortgage or the property because they were for unsecured credit card debt. The Buyer stopped paying after a few months and ended up signing a Deed in Lieu of Foreclosure that has been recorded with the clerk of court. Now I have a new Buyer to sell to with a mortgage and note and a new title agent. The new title agent says: "The final judgments do attach to the real estate. The only option that I know around these judgments are to negotiate the release of the property or foreclose on the mortgage that you had."
What is the right answer and what, if anything, do I need to do? THANK YOU for helping!
Divorce / Separation Lawyer
Judgments do not attach to homestead property but because there has been no court determination that the property was, in fact, homestead, the title agent is uncomfortable providing title insurance until these debts are paid. There are ways for owners to designate property as homestead and you can quiet title against the credit card judgments but you have a practical problem that many people face when they seek title insurance.
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Real Estate Attorney
It's not quite clear if you, or your buyer, is liable for the aforementioned judgments. You should hire the services of a Florida lawyer to review your transaction and provide counsel.
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