This installment of “Ask Nick,” with Fortune Title President Nick Timpanaro, originates from a question on what a lender should do when there are judgments against the potential buyer of a property, but those judgments have no attachment to the property itself.
Our writer reached out to Nick on the behalf of a lender after it was discovered that the buyer had an active judgment against him from an investment capital firm. In her question on how to proceed, Jen said it did not appear that the buyer was in position to pay the judgment. The question is not being re-printed because it discloses specifics about the case it is addressing.
Nick’s Answer: Be advised that the judgment you refer to is against the purchaser and does not affect the property in question. It does not attach to the property until he is in title.
The lender would have a Purchase Money Mortgage, which gives the lender priority over any prior judgments against the borrower. This is not a title issue.
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Under no circumstances is Fortune Title Agency, Inc. or any of its employees giving any legal advice. The Ask Nick Q’s and A’s are based on situations that the company has experienced and is sharing with the public for informational purposes only. Always contact your attorney for any legal advice.