Yes, under California law, debt collectors have the right to place a lien on a person’s home once they get a judgment. This means that the debt collector can then force the sale of the person’s home to collect the judgment, even if that property is the debtor’s only home.
However, there are some exceptions to this rule For example, if the judgment is for less than $75,000, the debtor may be able to keep their home if they can prove that they are unable to pay the judgment and that selling their home would cause them undue hardship
Additionally, if the debtor is over 65 years old, they may be able to keep their home if they can prove that they have lived in the home for at least 20 years and that selling their home would cause them undue hardship.
If you are facing a judgment and are worried about losing your home, it is important to speak with an attorney to discuss your options. An attorney can help you understand your rights and can advise you on the best course of action to take.
Here are some additional things to keep in mind:
- The debt collector must first obtain a writ of execution from the court. This is a document that authorizes the sheriff to sell the debtor’s property.
- The debt collector must then give the debtor notice of the sale. This notice must be given at least 20 days before the sale date.
- The debtor has the right to attend the sale and bid on their own property.
- If the property is sold at auction, the debtor will receive the proceeds from the sale, minus the amount of the judgment and any other costs associated with the sale.
It is important to note that this is just a general overview of the law. The specific rules and procedures may vary depending on the circumstances of your case.
How to Protect Your Home from a Judgment
If you are concerned about losing your home to a judgment. there are a few things you can do to protect yourself:
- Pay off the debt as soon as possible. This is the best way to avoid a judgment being entered against you.
- Negotiate a payment plan with the creditor. This can help you avoid having to sell your home to pay off the debt.
- File for bankruptcy. This can discharge your debts and prevent the creditor from collecting from you.
It is important to speak with an attorney to discuss your options and to determine the best course of action for your specific situation.
Losing your home to a judgment can be a devastating experience. However, there are steps you can take to protect yourself. If you are facing a judgment, it is important to speak with an attorney to discuss your options.
Additional Resources
A Dramatic and Effective Remedy – That Should Rarely Be Used
“Can I force her to sell her house?” is typically the first question a creditor asks after a judgment is entered against an individual. If your judgment debtor has property, it is by far the most alluring target for enforcement, especially if it is the debtor’s home. The debtor usually files for bankruptcy or makes a good faith settlement offer as a result of even initiating the process.
Nevertheless, the procedure is seldom used. The reasons are twofold: first, the practical outcome of a sale is rarely the satisfaction of the judgment; second, the legal procedures are costly and burdensome.
The sheriff or a registered process server will levy property used as the debtor’s residence prior to the execution sale. Levying officers require a fee and cost deposit before performing real estate levies. These deposits vary by county, but are usually in the range of $400 to $600. Following the receipt of the deposit and the Sheriff’s levy instructions, the levying officer will record a copy of the Notice of Levy and the Writ of Execution. The judgment debtor, the owner of record, and at least one occupant are then served with these documents. While these three requirements are usually met by serving the judgment debtor, that is not always the case. The judgment creditor has 20 days from the date of notice of the levy to submit an application for an order permitting the sale, so the levying officer must notify the judgment creditor as soon as the levy is completed.
It would be prudent for the creditor to obtain an abstract or certified copy of the judgment, a litigation guarantee from a title company, an appraisal from an impartial appraiser, and to determine the quantity and number of liens on the property prior to this happening. All of this information will be required for the application. After receiving the Application, the court schedules a hearing and provides the creditor with notice. Then, at least thirty days before the hearing date, the creditor must serve the debtor and any occupant.
The real goal of the motion is to ascertain the homestead exemption’s value and ensure that, in the event of a sale, the debtor will receive that sum. The amount of the exemption is calculated pursuant to California Code of Civil Procedure Section 704. 730. It is, at a minimum, $75,000. If the judgment debtor lives with a relative who is not the property’s owner, the amount is $100,000. If the debtor or her spouse is disabled, over 65, or over 55 and makes less than a certain amount, it can go up to $150,000.
During the hearing, the levying officer will be ordered to conduct an execution sale by the court, which will also determine the amount of the homestead and the dwelling’s fair market value. Keep in mind that the sale has not yet taken place and that it has been about three months since the decision to force the sale.
Is It Wise To Sell Your House To Pay Off Debt?
FAQ
What is it called when you are forced to sell your property?
Do I have to pay a debt if it has been sold?
Can I lose my house over credit card debt?
Can a credit card company make you sell your house?
Can I Sell my Home if I owe a debt?
Homestead exemption laws prevent the sale of a borrower’s home by creditors in satisfaction of a debt. In many states, whether your home may be subject to forced sale depends on how much home equity you have. For example, let’s say Jim owes creditors $200,00 after his business failed.
Can a creditor force the sale of a home?
If you own a home, you may be wondering if a creditor can force the sale of your real property to pay off a judgment against you. A judgment awards a debt collector or creditor a court order that can be used to collect the funds they are owed via garnishment or bank account levy.
What happens if a creditor refuses to sell a home?
But if the creditor chooses not to wait for a sale or refinance, the creditor can execute on the lien by asking a court for permission to sell the debtor’s real estate. So, if you have enough equity in your home, a judgment creditor might be able to force the sale of the property to collect on the judgment.
Can a debt collector force you to sell your home?
Legally, it’s true that debt collectors could get a judgment in court that would force you to sell your home to repay a delinquent debt. In practice, however, this rarely ever happens. That’s because forcing you into an involuntary foreclosure is costly and time-consuming, says debt relief expert and Resolve co-founder Michael Bovee.