In one sentence
A search of court and public records for judgments against the borrower or guarantor that could attach to property or reveal risk.
The longer version
Judgment and lien searches surface money judgments, tax liens, and similar encumbrances tied to the parties. Findings must be resolved, bonded, or accounted for before closing.
These searches are standard diligence, and clearing what they surface can add time, so they are ordered early.
Common questions
- What is a judgment search?
- A search of court and public records for judgments against a borrower or guarantor that could attach to property or signal financial distress.
- Why do lenders run judgment searches?
- Because a judgment can become a lien on property and may indicate litigation or credit problems relevant to the borrower or guarantor.
- Where are judgment searches run?
- Typically in the counties and states where the borrower and guarantors are located and where the property sits, often alongside lien, litigation and bankruptcy searches.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The commercial loan closing processThe five stages from term sheet to funded.
- Commercial loan softwareWhere this sits in the lending stack.