I have a client who just contacted me about short selling a duplex that he owns.  He has recently had a number of financial issues and as a result has 2 judgments as liens against this property for a total of about $13,000.  The property value is around $125,000.  What is the best way to proceed?

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Sue,

 

You need a plan of attack for the Judgments.  In most cases the lender will not approve payment of them out of their proceeds.  Either the buyer or seller will have to settle with them @ closing.

 

 

That is what I figured... the seller will not pay them, so that only leaves me with the buyer!  Not sure how to find one who will be willing to do that!

In my experience with judgment liens on the property, I have had to contact the lienholder (usually a law firm) and work out a settlement for less than the amount of the judgment.  If the seller does not have any money to contribute, I've had to contribute as much as $1000 to the transaction in order to earn my commission worth nearly 10 times that amount.  So, in the long run, it was worth it.  However, in your case, with the property valued at only $125000 it may not be worth giving up that much of your commission if the seller cannot contribute any funds.  Most first lienholders will not pay anything toward personal debt.

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