Judgements, Relocations, & Rental Property??? Need advice.

Asked 7 months ago - Beaumont, TX

We have an existing mortgage in my husband's name (this is our homestead). There is a judgement lien on this property in my husband's name over an old credit card debt (just old enough not to qualify under the law that nullifies judgements on homestead properties). Now we have to move because of my husband's job. We are thinking about getting a mortgage in MY name in our new location. Can the judgement follow us onto this new mortgage? What happens to our existing "homestead" property once we no longer live there? We already know that with the lien, we can't sell the house. But, if we rent it out, will we get into trouble? Should we just call up the companies and try to settle the judgements? Might they settle for less than what is stated? What is really the best thing for us to do?

Attorney answers (2)

  1. Lu Ann Trevino


    Contributor Level 19


    Lawyer agrees

    Answered . In Texas, a judgment lien can't stop the sale of your homestead. The lien must be released and the funds from the sale of the homestead if used for payment on the new homestead can't be attached to settle the lien. If the creditor refuses to release the lien and you lose the sale of the homestead, you have a valid claim for damages against the creditor.

    Generally, judgment creditors will settle for less than the face value of the judgment.

    This comment is given for educational purposes only. No attorney-client relationship exists between us.
  2. Daniel Ray Gamez

    Contributor Level 12

    Answered . Texas affords the most consumer-friendly rights on homesteads. It sounds like the best thing you can do at this point is to try to contact the creditor and see if you can settle the judgment.

    This reply does not constitute legal advice or the establishment of an attorney client relationship.

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