The Hidden Judgment Lien – How Jane’s Title Insurer Staved Off a Forced Sale of Homestead

Jane, a clerk in a convenience store, felt fortunate to be able to make the monthly mortgage payments for her home. She had bought the home at a bargain, from a seller who needed to liquidate quickly. She did not know at the time that the seller owed a lot of money to a third party who had taken steps to execute on a judgment against the seller. The judgment against the seller also had not been shown as a separate matter in the preliminary report that Jane had received before closing.

Shortly after her purchase, Jane found a notice posted to her door, announcing a sheriffs sale, in a few weeks, of her house to pay off the judgment. Fortunately for Jane, her title insurer, North American, stepped in immediately when notified of the impending sale, and made prompt arrangements to pay the judgment, enabling Jane to keep her home.