{"id":955,"date":"2020-08-12T06:00:52","date_gmt":"2020-08-12T10:00:52","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=955"},"modified":"2024-04-25T23:20:30","modified_gmt":"2024-04-26T03:20:30","slug":"the-judgment-lien-vs-the-levy","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/the-judgment-lien-vs-the-levy\/","title":{"rendered":"The Judgment Lien Vs. the Levy"},"content":{"rendered":"\n
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What is the difference between a lien and a levy on\nsomeone\u2019s property? A lien is a cloud on a title, to be released once the\nhomeowner completes repayment to a creditor. A levy is a legal seizure of the\nproperty. <\/p>\n\n\n\n

Here\u2019s how they work.<\/p>\n\n\n\n\n\n\n\n

Judgement Liens<\/h2>\n\n\n\n

The term lien<\/a>, meaning the right to hold an interest in someone else\u2019s property until a debt is repaid, comes from the Latin\u00a0ligament<\/em>,\u00a0meaning bond or tie<\/em>. \u00a0While the homeowner receives a notice of a lien, the lien attaches to the property itself. It stays with the property, not its owner; but in reality, homeowners pay off their debts so they can sell homes with marketable titles, or to be approved for refinancing. <\/p>\n\n\n\n

A mortgage or deed of trust<\/a>\nis a common example of a lien \u2014 a consensual lien. The homeowner agrees to it,\nthrough a loan contract. <\/p>\n\n\n\n

A judgment lien<\/em>, in contrast, is court-ordered. Courts\norder payments to people in cases involving debts, damages, or obligations \u2014\nfor example, to award spousal or child support after divorce. A judgment lien is\ncertified in the courthouse, and submitted to the county recorder of deeds. The\nlien can apply to any<\/em> of the debtor\u2019s real estate, anywhere in the\ncounty \u2014 even property acquired later. Plus, the creditor can have a copy\nrecorded in multiple counties, to potentially attach to more property. <\/p>\n\n\n\n

Check the state-specific judgment lien law for information\nabout how liens are attached, when and for how long they can be renewed, and when\nthey expire.  <\/p>\n\n\n\n

Levies<\/h2>\n\n\n\n

A levy<\/a> is the seizure or sale of the property to pay a debt. The term means to raise<\/em> or collect<\/em>, and originates in the word lev\u00e9e <\/em>\u2014 French\u00a0for raising.<\/em>\u00a0It\u2019s based on a judgment lien, but it takes the key extra step of taking the property over. Levies stay on a property even if it is transferred to another person or a living trust. They cannot, however, attach to future properties the debtor may buy. <\/p>\n\n\n\n

A creditor executes<\/em> the judgment by using a writ\nof execution<\/em> and having the debtor’s property sold through a county\nsheriff’s sale. The steps involve: <\/p>\n\n\n\n