Can a judgement be released at a real estate closing?

UPDATED: Oct 1, 2022

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Can a judgement be released at a real estate closing?

The title company found an unpaid judgement of $150,000 thought to have been settled by my deceased father. My mom cannot pay this, she cannot afford the current mortgage. The lawyer for the owed company said the judgement could be released at closing if she sold the house in NJ. Is this possible? I haven’t found any info supporting this.

Asked on September 19, 2018 under Real Estate Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

What the lawyer almost certainly means is that if the house is sold and brings in at least $150,000 (over and above paying off any mortgage(s) and paying closing costs), that money can be used to pay the judgment at closing; once the judgement is paid, it will be vacated and any lien(s), etc. released. But he is talking about using the sale of the home to pay the judgment at closing.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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