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Tina
Tina, Lawyer
Category: Legal
Satisfied Customers: 8775
Experience:  JD, BBA Over 25 years legal and business experience.
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I just sold my home. My home had a lien on it from my

Customer Question

I just sold my home. My home had a lien on it from my father's previous dealings with an attorney. The lien was for $6000. I have refinanced this property and they allowed the refinance to go through as the lien was old and for a small amount. We could not find the lady before the sale so I got a bond for $6000. The sale has closed and now we found the lady that holds the lien. She says I owe $6000 plus 10% over 23 years or $54000! Is this correct?!
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: California
JA: Has anything been filed or reported?
Customer: Yes. The home sale is closed and I got a bond which is on the closing statements. Not sure of your question
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 4 months ago.
Category: Legal
Expert:  Ray replied 4 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Expert:  Ray replied 4 months ago.

Unpaid judgment amounts accrue interest at the legal rate of 10% per year (CCP § 685.010; 7% if the judgment debtor is a state or local government entity, California Constitution, Article XV, §1). Costs approved by the court are included as part of the judgment amount, and thus accrue interest.

So here the judgment bears interest for the 23 years so yes it might be this amount if it has been owed this long.I am sorry , please don't shoot the messenger.But 23 years interest at 10% per year will add up.

You may need to think about whether you want to go deeper into the house knowing this goes up 10% per year until paid off.And it will cloud title if you have to try and sell it you will have to pay it off.Eventually they may try to foreclose on the property here as well.

Please don't shoot the messenger here, I am trying to be honest with you.If you were able to refinnace thats great wit the bond but the payoff here will be much more.

I appreciate the chance to help you today.Thanks again.

Unpaid judgment amounts accrue interest at the legal rate of 10% per year (CCP § 685.010; 7% if the judgment debtor is a state or local government entity, California Constitution, Article XV, §1). Costs approved by the court are included as part of the judgment amount, and thus accrue interest.

Expert:  Ray replied 4 months ago.

Law for reference

685.010. (a) Interest accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied. (b) The Legislature reserves the right to change the rate ofinterest provided in subdivision (a) at any time to a rate of lessthan 10 percent per annum, regardless of the date of entry of thejudgment or the date any obligation upon which the judgment is basedwas incurred. A change in the rate of interest may be made applicableonly to the interest that accrues after the operative date of thestatute that changes the rate.685.020. (a) Except as provided in subdivision (b), interestcommences to accrue on a money judgment on the date of entry of thejudgment. (b) Unless the judgment otherwise provides, if a money judgment ispayable in installments, interest commences to accrue as to eachinstallment on the date the installment becomes due.

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