HELP! I need to get 2 judgments released to close a short sale.

Hi Everyone,

I could really use some help.  I have a client that has 2 judgments that need to be released so that her short sale can be completed.  What is the best & fastest, as time is of the essence, way to get them to release them.  One is Capital One but it is with a lawyer (about $2K) and the other is with an apartment complex management company (about $4.5K).

My client has absolutely no money & doesn't work.  I know that I need to get them to sign a Release of Land from Judgment Lien but how do I get them to do that when I have nothing to offer them?  This property is located in Minnesota.


Please Help!! Tenative closing is October 10th but approved out until October 24th.



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First and Foremost, are you 100% that these need to be taken care of in order to sell the property.  Check with your title company and make sure that they check with their underwriter.  I have experienced this in the past with 2 similar liens and they did not have to be satisified to sell the property
It doesn't need to be satisfied but it needs to be released from the land in order to do the short sale. I need some words of wisdom as to how to talk them into signing the release of land.  The judgment will still remain with her.  Any ideas? 
If it does not need to be satisfied, just ask them to remove it from the land and attach it to her.  I am sure that they also know that it does not need to be satisfied and will try to tell you that they must be paid.  Keep us informed

What state are you in?  In SC, judgment attaches to the property and the lien has to be removed to provide clear title.   Sometimes they'll take a nominal payment to remove the lien from the property but will not release the debt completely.  I've had luck coming up with some money for them out of settlement but, of course, you'll have to get the lender to approve.  Have you asked the buyer to contribute?  That's my second step if the lender won't allow it.


 Most lien holders will settle for much less than the amount due.  I would contact both of them to find out what they'll take to remove the lien.  Then it's just a matter of finding the money.  :)  Good luck!

We are in Minnesota. Seller has No Income what-so-ever. She's on state assistance. Buyer does not want to contribute.  Can't say I blame her. Why would I want to pay off someone else's bad debts. I've been praying for pennies from heaven but so far nothings falling - only dried up leaves.

Two things might help. 


1.  Ask Buyers of course for a nominal contribution.

2.  Show the lienholders the HUD netting zero to Seller, and see if they'll just sign the doc.  If they insist on a payoff to do it, find out what it is and see if the Buyers may come up to all or part of it.  

Start negotiating with them!

I have been negotiating with them. Problem is, they want all the money that is owed and my seller has NO income.  None, zero, zip.  She is on state assistance.  Ever tried to pull blood out of a turnip.  Impossible.  So I need other non-monetary ideas.


I try to put myself in the creditor's shoes when approaching them.  I try to figure out what will appeal to them.  The obvious answer is $$$$ ; )  but if there is none to motivate them, what else might?  I would make it about dollars and cents/sense.  

"Well Mr. Creditor my client needs this lien released from the property in order to do a short sale.  If we can successfully do a short sale the bank will most likely forgive the shortfall and my client's monthly overhead will be $1000 less, which frees up money to start making monthly payments to you.  If the bank forecloses, there is a good chance they will pursue a deficiency judgement of $50,000 which my client will have to start paying, which will increase their monthly overhead and there will be less money to pay you with."

If you approach these liens with the attitude of "how can I help you get what you want" (their money), you will find they get in your corner pretty quickly.  Appeal to their bottom line.  If they can see the benefit to what you are proposing then they usually will go for it.

Good Luck w/ it!

Nice!  So far I have had no luck with them.  It's been money or nothing. I love your idea and will try to put that into play today.


Thanks so much and I will keep you posted.



Good luck!  I hope it goes well.  Let us know what happens.
I work with an attorney, and had him call the other attorney about a judgement of some $240,000.  They settled for $1,000 which the other agent and I gladly split to get this done.  An attorney on your side does wonders!

Is there a mortgage and who holds the mortgage?  They will have to settle for less or go into foreclosure.  They could offer the two judgments some money, if Capitol One and the management company do not accept what the mortgage company is agreeing to give them, they will get nothing if the property is foreclosed on, they will not have any collateral, except to file their judgments against the person, which will probably not own another home for a long time.



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