How can the investor obtain a Satisfaction of Judgment?
If the judgment debtor had intended to re-finance their home, the proceeds from the new lender would have to pay off the Judgment. That would be a condition of funding the loan because the bank wants to make sure it is in first priority. However, an equity purchaser steps into the shoes of the borrower since they are acquiring the property subject to the liens against the property and not as bona fide purchasers for value. Additionally, while there may be enough equity to make the property interesting to an investor, it may not be enough to satisfy the full amount of the judgment. Accordingly, the investor should consider offering a short payoff to the judgment creditor in exchange for a release of the judgment lien.
