This is a state-specific question. I'll give a Virginia answer, which may not be a good Florida answer. Also, we need to separate the questions of whether it attaches and whether an abstractor is responsible for finding it.
In Virginia, a judgment that has been properly "docketed" attaches to after-acquired property of the judgment debtor as soon as the deed to the debtor is recorded. However, if there is a purchase money deed of trust, it attaches
subordinate to the PMDOT.
Virginia courts have been reluctant to move toward equitable subrogation,
so the prudent abstractor will always check for prior judgments against the owner and report them when doing the title search for a second or a refinance. Then let the title insurance company make the judgment call. That's their job. A lot of people in the VMC world don't like this; they want a "clean report" from the abstractor. Bull! That is one of many reasons that I don't do residential work any more. Your customers tend to be idiots in that line of work.
If this turns up on a pre-foreclosure report, the lender's first call should be to the title insurance company (the underwriting company, not the agent) who insured the deed of trust that is being foreclosed. The title insurance company's job then is to fix the problem, give an indemnification, or show the lender that there is no problem. Then, the company may take whatever recourse is available against the abstractor.
to post a reply:
login - or -
register