Anyone know if an old judgment from 2000 can be attatched as a lien on new real estate property purchased in late 2003 or 2004? This has not happened but a friend of mine is buying a house -should close in Jan, and the loan officer told her not to worry about this old judgment from 2000, even as unpaid. They told her that they never have seen an old judgment like this come to life and attatch to property. I told her that if it were an issue the lender/mortgage company would never have approved her loan, and not to worry about it either. The loan is thru a private investor that works thru this mortgage company. The mortgage officer said that this type of loan is different than FHA/VA/or standard conventional. I think it's B-Paper where there are actually 2 loans for the 1 property, a 1st lien and 2nd lien.
I don't think anything other than creditor inertia would prevent the 2000 judgment from attaching to the 2004 home purchase. Depending on where the person lives, it might be picked up automatically as a lien on the property if, say, the home buyer sells the house a couple of years from now and there is a title search. The home buyer should speak directly to a title agent regarding the future potential effects of that old judgment. A land trust now might help prevent problems later.
