Mortgages and Judgments - What is the Difference

I buy Mortgages nationwide 

Paying or Not.  

Mortgages and Judgments:

1. Judgments are against the person. Mortgages are against the property, the associated note is  against whoever signed, this can include third party guarantors.
   
   
2. Judgments do not automatically create a lien on real estate. Once a judgment is recorded it becomes a general lien against all real estate that is owned or will be owned in a specific county for a limited period of time. Mortgages attach to a specified property only.
   
   
3. Keeping a judgments alive  usually requires renewing it, and the liens must be also renewed (or revived) Judgments may expire. Mortgages do not expire, there may be a 99 year limitation.
   
   
4. If you foreclose a mortgage on a property and there is a shortfall, some states permit deficiency judgments, limitations exits on when these may be obtained and how they may be enforced. If there is shortfall with a judgment, you can automatically pursue other property.
   
   
5. Whereas judgments generally have statuary rate of interest set by the state. The interest is not automatic, you must ask the court to apply it to the judgment. Mortgages interest rate and other loan terms that are set in the associated note.
   
   
6. To enforce a judgment, you only need an assignment of judgment. To enforce a mortgage you need, the mortgage, the note, and the assignment (some states have additional requirements).
   
   
7. Owning a mortgage requires you have office hours and a toll-free number. There are other requirements in owning and servicing mortgages. Such as accounting, answering questions and furnishing a payoff information. Judgments do not require office hours, or you to have verbal contact with the debtor.
   
   
8. Judgments and mortgages have different requirements for notices to the debtor.

9. With Judgments one must not to levey to much property. A Mortgage attaches to a specific property, matains it lien position (behind prior liens, taxes and in some locations homeowner association fees), regardless of the property value.
   
   
10. Un-secured judgments are relatively easy to discharge in bankruptcy. Mortgages, by definition are secured and not easy to discharge.
    Tip: With Judgments recording a lien at least 90 days prior to the debtors bankruptcy, may protect your interest.

I buy Mortgages nation wide Paying or Not.  

This above material is for educational purposes only. is not intended to be legal, accounting or any other form of advice, if you need that contact a competent professional in your jurisdiction.