How To Record A Lien

Recording a lien was once a very popular and cost effective way to recover many judgments. Because of the rotten economy, judgment liens are not as wise of an investment or as reliable as they were before.

There are several types of liens which usually could be categorized as belonging to 1 of 2 kinds; real estate liens, and non-real estate liens.

Depending on which state you are in, there are most often 3 kinds of judgment liens used in the recovery of judgments: real estate liens, UCC liens, and liens created by having a debtor served personally with a judgment debtor examination.

All regular judgment liens expire, but most may be renewed. Usually, real estate judgment liens last as long as the judgment does. UCC liens last an average of five years, and debtor examination liens usually last one year.

With judgment recovery, the most common kind of liens are liens on real estate. If the judgment debtor's real estate is sold or refinanced, the judgment is sometimes partially or fully repaid, in exchange for the creditor removing the lien.

When in California, to record a real estate judgment lien:

1) Complete an Abstract Of Judgment document. One can get this form at the court's web site or at the court. Make two printed copies.

2) Mail or bring your 2 paper copies to the court. Pay the court, to stamp the Abstract Of Judgment printed forms. They keep a form, and give you the second copy. Make a copy of the court stamped copy, or the court can print an extra copy for you for a small fee.

3) Mail or bring two copies of your Abstract Of Judgment to the county recorder where your judgment debtor's real estate is located. Pay the recorder to endorse the abstract of judgment, and pay them to mail a lien notice to the debtor. The county recorder keeps keep one copy of the Abstract Of Judgment, and return a stamped copy to you. County recorder policies vary by state and county, so always check the details at the court or their web site.

UCC liens are usually recorded when the debtor is a business. UCC liens are occasionally also recorded with non-business debtors.

To record UCC liens, download a UCC form from your Secretary Of State's web site and fill it in. Writing the judgment case number and information, and a listing of the debtor's property on the UCC form, may make the lien stronger.

Mail your filled out and signed UCC lien form to the Secretary Of State with your check, and wait for them to mail a copy back to you. Then, mail the copy of the stamped UCC form to the judgment debtor.

In California, having a debtor personally served with a judgment debtor exam, creates a lien on all their personal property for one year. Including a description of some of the debtor's personal property on the back or front of the judgment debtor examination affidavits and forms, may make this type of lien more powerful.

The most common way a judgment creditor may be repaid by recording real estate liens, is if or when the debtor refinances or sells a property, as sometimes buyers and lenders require or arrange for prior recorded liens to get paid off.

Sometimes recorded liens can make you a secured creditor if your debtor files for bankruptcy protection. Occasionally, you might eventually be paid something after the debtor files for bankruptcy.

Getting and recording judgment liens doesn't guarantee that a judgment creditor gets paid.

In fact, usually, these days, recording liens does not result in any payment. However, buying and recording a lien isn't expensive or difficult, and may be a good first step to eventually getting paid.

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