Abstract of Judgment!

An abstract judgment is a written summary of the judgment that states how much money a losing defendant owes to the person who has won a lawsuit (judgment creditor), the rate of interest for judgment amount, the total court costs, and any other specific orders that the losing defendant (judgment debtor) must follow. It must be acknowledged and stamped so that it can be recorded and made official with the local government where the judgment took place.

The main purpose of this abstract is to create a public record and to create a lien or claim on any real estate property owned by the defendant located in the county in which the judgment is recorded. If the loser does not pay the judgment voluntarily (during the foreclosure process) then the winner can force a sheriff's sale of any said property to collect.

If you receive this abstract, a judge has passed judgment in favor of the plaintiff (the lender) and your house may be put up for auction. If this happens, you must either satisfy the judgment and clear the lien, or lose you home.

You want to take action before you get to this point in the process, although it isn't too late if the actual sale has not yet happened. Learn how to use the abstract of judgment and save your home before auction day!