How to Convert Judgment Liens to Foreclosures in Texas
A judgment lien is placed on a property when a borrower fails to pay a debt, maintain their income taxes or compensate a contractor hired to work on the property. The judgment is a court ordered demand for payment, granting the holder a stake in the property and an option to foreclose. However, converting a judgment lien into a foreclosure can be time consuming, challenging and costly.
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Instructions
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Hire a real estate attorney. This can have an initial financial impact of $2,000 or more depending on the attorney's retainer fee and billing rate. It's important to hire a real estate attorney to convert the judgment as opposed to a general attorney since Texas property code will need to be cited in order to enact foreclosure proceedings.
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Fill out the court paperwork. A foreclosure in Texas can be judicial or nonjudicial. When converting a judgment lien to a foreclosure filing, the plaintiff, or filer, must be able to produce proof of the right to foreclose as written in the deed of trust on the property. The deed will determine whether or not a foreclosure filing will require a judicial approval before moving forward or if it can be done using the services of a court-appointed trustee.
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File the foreclosure using the attorney with the courts. A foreclosure package will need to accompany a copy of the deed of trust. At this point, the plaintiff will be responsible for court filing fees related to the foreclosure, judicial or not. The foreclosure filing must take place at the county recorders office where the property is located.
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Have the response, if applicable, directed to an attorney once the borrower receives the foreclosure notice. Foreclosure responses are only typical if the borrower has hired an attorney and is counter suing for wrongful foreclosure. In these cases, the conversion of a judgment lien to a foreclosure will be lengthy and can be tied up in the judicial system for years.
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Tips & Warnings
Liens filed prior to the foreclosure judgment will be compensated prior to the claimant's lien.
