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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>I have a related question. Default judgment is entered against Debtor. Judgment is not recorded and Debtors files chapter 7. There is a little equity above the homestead amount, but trustee still files report of no assets. The debt will be discharged. However, the judgment lien cannot be avoided under 522(f). What happens to the judgment lien after the case is closed?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jeff Davis<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Dwight Bickel<br><b>Sent:</b> Tuesday, September 29, 2020 12:23 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBARP] Taking Title Subject to Lien<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'>Upon acquisition of ownership, the judgment will automatically attach as a lien to non-homestead real property. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'>Often a purchaser chooses not to pay off a prior judgment at the time of closing. A purchaser has the right to delay, sometimes hoping the creditor will never enforce the judgment and eventually the judgment expires as a lien. The judgment creditor usually has no knowledge that real property has been acquired.<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'>If there is a purchase money loan, the title company can insure the new purchase-money lien is superior, and remove the judgment as an exception to that loan policy. The judgment will be an exception on the owner's title insurance policy. <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'>However, the judgment creditor can quickly begin execution proceedings against that property. There is a rule in equity that the creditor is required to first pursue other collection first, resorting to a Sheriff's sale of real property only if required for collection.<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div><div id=Signature><div><p class=MsoNormal>Dwight A. Bickel<o:p></o:p></p><div><p class=MsoNormal>Washington Title Professional<o:p></o:p></p></div><div><p class=MsoNormal><a href="mailto:dwightbickel@hotmail.com">dwightbickel@hotmail.com</a><o:p></o:p></p></div><div><p class=MsoNormal><a href="http://www.linkedin.com/in/dwightbickel">www.linkedin.com/in/dwightbickel</a><o:p></o:p></p></div><div><p class=MsoNormal>http:/www.titleadvisor.com<o:p></o:p></p></div><p class=MsoNormal>206-484-1976 <o:p></o:p></p><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div></div></div></div><div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'><o:p> </o:p></span></p></div></div></div></body></html>