Once a judgment lien is filed with the county court, an individual with unpaid credit card debts will be forced to pay the debt collector or collection agency that initiated the property lien as soon as the home is sold. An impatient collector, however, may be able to bring about a forced sale through foreclosure to procure a quicker payment.
A Judgment Lien Must Precede a Debt Foreclosure
Before a debt collector can hope to seize a home for unpaid debts, it must first be awarded a judgment in court. It must then file with the appropriate departments to secure a property lien (See Avoid a Default Judgment).
Once a property lien has been placed on the debtor’s home, he may not receive any proceeds from the sale of the property without first paying the lien. Most states have a statute of limitations that sets a time limit on how long a property lien can be enforced. After the statute of limitations has expired, the judgment lien is no longer valid and the creditor must provide the debtor with a statement of release.