Escrow & Title
A 'satisfaction of judgment' in Nebraska clears a judgment lien from a property when:
AThe judgment debtor files for bankruptcy
BThe judgment creditor records a satisfaction (release) after the judgment is paid in full✓ Correct
CThe property sells at a price higher than the judgment amount
DSeven years pass from the date of the original judgment
Explanation
After a judgment is paid, the judgment creditor must record a satisfaction of judgment in the county records to release the lien from the debtor's property. Without this release, the lien remains as a cloud on title.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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