Page 132 - Judgment Enforcement Course

Judgment Enforcement – The Step-by-Step Course

Peter’s Tip & Strategy:

I was recently offered a judgment, and when I did my database research I learned that one
of the JD’s had just bought a home. Great. But if I take the judgment, there’s not enough
equity in it. I may have to wait years for a refinance or sale; and, the JC may
get impatient. If I try to force a sale of the property, there may not be any

equity above the homestead for me.

So, I may:
1) Offer to buy the judgment outright for 10% of its value, or
2) Tell the JC that I have an asset in sight, but that she must be patient,

because I may not be able to get paid right away.
As I write this, I’m waiting for a call back from the JC. If she agrees, I may add to our
contract that she understands that this may take time. Or, I may just take it, put the lien

down to secure the judgment, and go for a bank levy or something else until I’m paid.
Then release the lien.

The UCC Lien

UCC stands for “Uniform Commercial Code.” It’s most often used by businesses when
they lend money to individuals or other businesses. They file this lien with the secretary of

state. The businesses must agree to this lien in order to get the loan, so it’s voluntary, and it
protects the lender in the event that the borrower defaults.
But we can also use a UCC lien to lien a JD’s personal property as an “Involuntary

lien.”. This lien will not include the JD’s real property and vehicles, but most other assets
of the JD. A CA UCC lien, in part, looks like this.

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