Judgement lien: Question on resolving

[Nick M.]

Hi All,

I'm purchasing a New Jersey quad at a short sale cash price of $255K.  The seller owes the bank circa $280K.   We went into contract in March 2016, with an inspection shortly thereafter.  Few weeks ago I learned the short sale was approved- yea!   Well, the excitement has been some what short lived.  Recently after running title I've come to learn of 3 judgement liens: 2 from the DMV from 19 years ago, each for about $800.  No biggie.  The last from 13 years ago is for $25K (abstract also says "plus costs" - not sure what that means).  This judgement comes after losing or perhaps not contesting a lawsuit from a corporate entity.  Note: It is unclear if any of these judgements are truly against the seller because he has somewhat of a common name.  

The results from the title search were sent to the seller's attorney about 8 days ago with a request to sign an affidavit of title, stating the judgements aren't against him (but someone with a similar name).  To date, I haven't heard back from the seller's attorney.  I'm imagining at this point, the seller won't sign the affidavit because in part or in whole, the judgments are truly against him.   Note: Bank's approval of short sale expires September 12th, 2016.

Question:  What can I expect now?  What options do I have?  Will the bank who is the first lien holder negotiate with the owners of these other judgements (junior leans)?  Will they do so by September 12th?  Should my attorney and I reach out to the judgement owners and negotiate directly?  What can I do to secure the property while minimizing my out of pocket expenses for paying off leans.

Thanks so much for your feedback.

[Nick M.]

@Rich Baer liens expire after 20 years in NJ.  So for the DMV judgements they expire next year, the corporate lien still has another 7 years to go with it.

@Wayne Brooks  I just re-read the bank's foreclosure notice that came in the title paperwork.  Not only does it address the seller or owner of the property but also lists as a defendant, the corporate entity that has a judgement against the seller.  This notice was issued back in November.  So it seems the bank deems the DMV judgement to belong to another person with a common name but the corporate judgement to be against the seller.  Furthermore, it suggests that they knew of the judgement well in advance.  How does this impact things, if at all?