Many mortgage companies will not lend to borrowers who have open or recently paid judgments. Judgments also keep credit scores low and can make them so low that you will not qualify for a mortgage even if it has been paid off. The effect a judgment has on your credit lessens over time.

Does a mortgage have priority over a judgment lien?

Liens generally follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor records its lien.

Which lien has priority over a mortgage?

A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.

How does a mortgage company get a judgment?

The mortgage lender can get a judgment lien against your personal property and other real estate that you own within the county, giving it a security interest in that property. Then the lender can foreclose on that other real estate.

Can a second lien holder collect a deficiency judgment?

If the mortgage creditor was a second lien holder in the foreclosure, it is more likely they will pursue collection efforts, especially if they received little or nothing from the foreclosure sale. This article explains the ways a mortgage lender can collect a deficiency judgment. (Learn more about deficiency judgments after foreclosure .)

When do mortgage lenders foreclose on other real estate?

Then the lender can foreclose on that other real estate. Lenders tend to foreclose if you have equity, and the lender thinks it’ll get enough money to make the effort worthwhile.

Can a bank get a judgment lien on your property?

The mortgage lender can get a judgment lien against your personal property and other real estate that you own within the county, giving it a security interest in that property. This means the bank can foreclose on that other real estate—it might do this if you have equity and the bank thinks it’ll get enough money to make the effort worthwhile.