What a judgment lien is
When someone wins a lawsuit for money against you, they get a judgment. In Mississippi, once that judgment is enrolled with the circuit clerk in a county, it generally becomes a lien on real estate you own in that county. That's why it shows up in a title search when you sell.
How long a judgment lasts in Mississippi
A Mississippi judgment lien generally lasts seven years and can be renewed by the creditor. Because the rules on renewal and priority are technical, ask an attorney to confirm the status of any judgment on your title.
Can you sell with a judgment?
Yes, but buyers want a clear title, so the judgment is usually paid from your sale proceeds at closing. The title company asks the creditor for a payoff amount and sends the money directly.
- Pay it in full at closing from your equity
- Negotiate a lower payoff with the creditor before closing
- Get a written release once it's paid
- If there's not enough equity, talk to an attorney about options
Negotiating a judgment
Creditors often accept less than the full amount for a quick, certain payment at closing. Always get the agreed payoff and the promise to release the lien in writing before closing.
Why a fast sale can help
Interest keeps adding to many judgments, and some creditors move to collect. Selling sooner can stop that growth and let you start fresh. A cash buyer or investor used to title issues can work through it with the title company instead of walking away.
Why work with a licensed agent who is also an investor
Most sellers have to pick a side: call a cash buyer and hope the offer is fair, or call a realtor and wait for a retail buyer. Travis can do both, and he'll show you the numbers for each before you decide.
- He invests himself. Travis can make a direct cash offer on some homes, as a principal, with his license status disclosed.
- He knows other investors. If a home isn't a fit for him, he can bring it to local buyers he already works with, so you can compare more than one offer.
- He finds investors on the MLS. As a licensed agent, he can list the home where agents and their investor clients look every day, which can bring more competition than a single "we buy houses" call.
- He's licensed in Mississippi. That means written agreements, clear disclosures and a duty to deal honestly with you.
Frequently asked questions
Can I sell my house if I have a judgment against me?+
Yes. The judgment is usually paid from your sale proceeds at closing so the buyer gets clear title.
How long does a judgment lien last in Mississippi?+
Generally seven years, and the creditor can renew it. Have an attorney confirm the status of yours.
Can I negotiate a judgment payoff?+
Often, yes. Many creditors accept less for a quick payment at closing. Get the agreement and lien release in writing.
What if I don't have enough equity to pay the judgment?+
Talk to an attorney. You may be able to negotiate, or other options may apply depending on your situation.
Will a cash buyer purchase a house with a judgment?+
Many investors will, because they're used to working through title issues with the title company before closing.
Talk it through with Travis
No pressure. He'll show you a cash option and a listing option side by side, so you can choose.
Related guides
This guide is general information, not legal or tax advice. Talk with an attorney or tax professional about your situation. Travis DeLoach is a licensed real estate agent in Mississippi (MS License # S62442) with Luxury Southern Realty. When we or our partners purchase a property directly, we do so as principals and disclose our license status.