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.
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.