The issue is not whether or not you have a judgment against you, the issue is whether or not the creditor used that judgment to obtain a lien against the home. If so, then you can still transfer the property, but the lien must be paid at the time of closing/transfer. Just because the creditor has a judgment against you does not divest of the right to sell and transfer property. A money judgment is just a court order saying that you owe someone a certain amount of money. They still have to collect on the judgment using whatever legal means exist; i.e., liens, garnishment, seizures, etc. However, if the transfer of the property is done to avoid creditors, the transfer could be reversed under the Fraudulent Transfers Act.
Answered on Jun 21st, 2012 at 6:08 PM