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In re Griffin (Case No. 08-50237) 12/2/2008

Court held that the creditor's judgment lien attached to the debtor's interest in real estate and was fully secured by the debtor's equity in the property.  Court held that a judgment lien may attach to the debtor's equitable interest because it is real estate within the meaning of Virginia Code section 8.01-458.  A vendee's equitable interest in real property subject to an executory contract is real estate to which a judgment lien may attach.  A vendor that retains legal title to real property sold pursuant to an executory contract possesses an equitable lien securing full payment of the purchase price. The vendee acquires equitable title subject to the vendor's lien.  As a judgment creditor cannot acquire better title to real estate than the judgment debtor possesses, a judgment lien is subordinate to the vendor's lien. However, a subordinate lien may be secured by the debtor's equity in the real estate.

Date: 
Tuesday, December 2, 2008
Category: 
Executory Contract
Judgments
Proofs of Claim
Unsecured Claim
Chapter: 
13