Civil Money Judgments in Pennsylvania

Judgment Liens

Court of Common Pleas

• Attachment: Date of entry in judgment index

• Duration: 5 years, can be revived for successive periods.. Up to 6 years if debtor died while lien was active (i.e. later of (a) normal 5 year period, or (b) 1 year after death).

• Revival: Yes. Must be revived within 5 years to maintain priority of date of entry. Can be revived after 5 years, but will only have priority from date of revival (i.e. any liens entered after judgment and before revival would now become senior).

• Attaches to After Acquired Property: No. However, revived judgment lien attaches to all property (including new property) owned at time of revival. Likewise, a revival can re-attach a judgment to property that was previously released if the debtor continued to own the property at time of revival; a new release would be needed.

Philadelphia's Municipal Court

Same as Court of Common Pleas judgments.

Magisterial District Courts

• Attachment: Does not attach to real property until entered in the Court of Common Pleas. Once entered in the Court of Common Pleas, same rules apply.
  
• Notes:
  • Cannot file in Court of Common Pleas until after 30 days have passed from final Magisterial District Court judgment
  • Magisterial District Judges cannot issue execution against real estate

Execution Sheriff's Sales

Like mortgage foreclosure actions, civil money judgments can lead to execution against real property and a Sheriff's Sale. Unlike mortgage foreclosures, where priority relates back to the recording of the mortgage, money judgments take priority from the date the judgment is entered. Execution on a money judgment can only divest liens entered or recorded after judgment was entered, and cannot divest liens that are preserved by statute such as municipal and tax claims.

Underwriting

Unlike a mortgage foreclosure action which is begun by Complaint only, a civil money judgment can be entered by Complaint or by Confession of Judgment if the action is commercial or business related

Documents Required for Review

This list is not exhaustive and additional documents may be needed based on the specific circumstances

• Full copy of Docket
• Complaint & Exhibits, and any Amended Complaints
• Affidavits of Service of Complaint (or Order and Proofs of Service)
• Judgment:
  • Default judgment with 10-day Notices, OR
  • Motion for Summary Judgment with Certificate of Service, and final Order granting judgment, OR
  • Verdict and Praecipe to reduce verdict to judgment, OR
  • Confession of Judgment (if commercial/business)
• Writ of Execution with Legal Description of Property
• 3129.1 Affidavit and any Amended Affidavits
• Affidavits of Service of Notice of Sale on Defendants
• Affidavits of Service of Notice of Sale on Lienholders (with proofs of mailing)
• Sheriff’s Proposed Schedule of Distribution (if available)
• Recorded Sheriff’s Deed (if available)
• Any Notices of bankruptcy filings or relief/discharge/dismissal (if applicable)
  

Note: Sheriff’s Sales of real estate cannot be directed from municipal or magisterial district court judgments; the judgment must be transferred to the Court of Common Pleas. The following is procedure for cases originating in the Court of Common Pleas.

Complaint Procedure

• Complaint filed
  • All owners of Property named as Defendants
    

Note: Make note of Defendants in Complaint to confirm judgment is properly entered against a Defendant.

• Service of Complaint on all Defendants
  • Personal Service
  • Substituted Service (Order of Court)
    

Note: Cannot serve by mail within PA without Order authorizing service by mail

• Judgment filed
  • If Default: 10-day Notices sent at least 21 days after Service complete and 11 days before Judgment was entered; Verification of Non-Military Service filed with judgment; no Motions to Open or Strike judgment filed, or all motions disposed of and appeal not filed or disposed of
  • If Summary: final order entered and appeal not filed within 30 days or appeal disposed of
  • If Verdict after trial: no post-trial motions filed within 10 days, or motions disposed of; reduced to judgment by Praecipe; appeal not filed within 30 days or appeal disposed of
    

If judgment is properly entered, proceed to Execution

Confession of Judgment Procedure

Confession of Judgment is governed by Rules of Civil Procedure 2950-2967

• Property at issue is NOT residential (regardless if debt is for commercial/business purposes). See 41 P.S. 407.
• Debt is commercial/business in nature.
• Debt is NOT a retail installment sale, contract or account under the Goods and Services Installment Sales Act.
  

Rule of Civil Procedure 2950: Confession of judgment does not include “consumer credit transaction” which is “a credit transaction in which the party to whom credit is offered or extended is a natural person and the money, property or services which are the subject of the transaction are primarily for personal, family or household purposes.”

• Complaint filed.
  • All owners of Property named as Defendants
  • Instrument is attached to the Complaint.
  • Instrument is less than 20 years old.
  • Name and last known addresses of parties
  • Averment that judgment is not being entered by confession against a natural person in connection with a consumer credit transaction
  • Statement of any assignment of the instrument
  • Statement that judgment has not been entered on the instrument in any jurisdiction
  • Averment of default or the occurrence of any condition precedent allowing entry of judgment
  • Itemized computation of the amount due
  • A demand for judgment as authorized by the warrant
  • Signature and Verification
    

Note: The Complaint will not contain a notice to defend or notice to plead and responsive pleading is not required even if they are included.

• Judgment entered by Prothonotary in conformity with the confession, and notice of judgment given under Rule 236.
• NO Petition to open or strike the judgment filed
  

ONE of the following three (3) Notices served:
1) Rule 2958.1 at least thirty (30) days before Writ of Execution;

• Notice Form Rule 2964 - Served on Defendants in judgment who has not entered appearance
  • By Sheriff or non-party adult in manner of Rule 402(a) for original service
  • By mailing under Rule 403
  • Or by Order of Court under Rule 430
• Served on Defendants in judgment who has entered an appearance
  • Rule 440
• Return of Service under Rule 405 filed
  

2) Rule 2958.2 with the Notice of Sale of real property (only for UCC § 9604(a) actions); or

• Notice Form Rule 2965
• 30 days prior to sale
• Served with the Notice of Sale per Rule 3129.2(c) (see below)
  

3) Rule 2958.3 with the Writ of Execution (only for combination personal and real property execution not under UCC 9604(a))

• Notice Form Rule 2966, with Petition Form Rule 2967
  

If judgment is properly entered, proceed to Execution

Execution

Important Note: For the Sheriff’s Sale to convey full title to the Property, all Owners must be Defendants under the judgment. For example, if 2 persons own the Property as tenants in common, but the judgment is only against 1 Owner, only that Defendant/Owner’s 50% interest would be sold at Sheriff’s Sale. Or, if Property is owned by Husband and Wife as Tenants by the Entirety, and judgment is only entered against 1 spouse, execution cannot be issued against the Entireties Property.

• Writ of Execution filed
  • Writ filed within five (5) years of judgment or last revival
    

Note: Confession of Judgment has specific form, and requires certification that one of the 3 Notices above was served.

Note: Any liens/interests obtained after the filing of the Writ do not require notice as long as the Sale was properly postponed according to the Rules of Civil Procedure. If the Sale is stayed and a new Writ is issued, the new Writ date would control. Important to determine the correct Writ date for the Sale that was actually held because multiple Writs can appear on a docket.

• Notice of Sheriff’s Sale on Defendants and Owners
  • Personal service
  • Substituted Service (Order of Court)
  • At least 30 days before sale
    

Note: If the new owner(s) took title after the judgment was entered, their interest would be bound by the judgment lien, but they must still be served with Notice of the Sheriff’s Sale. If new owner(s) took title before the judgment was entered, they would not be bound and execution could not issue against their interest in the Property.

Note: If an Order was already entered authorizing alternate service of the Complaint, it may apply again to the Notice of Sale without getting another Order. See terms of Order.

• Notice of Sheriff’s Sale on Lienholders
  • 3129.1 Affidavit filed
  • Notices sent by regular mail (with proof of mailing)
  • At least 30 days before sale
    

Note: Not all liens that are sent Notice can be divested, they must also be junior in priority to the judgment and not otherwise protected from divestment (i.e. Commonwealth, municipal liens). Plaintiff’s attorneys’ may send more notices than needed, or for liens that cannot be divested.

• Notice of Sheriff’s Sale Generally (Applicable to all sales)
  • Posting of handbills at Property by Sheriff
  • Advertisement by Sheriff
    • 1 general circulation
    • 1 legal publication
    • 1/week for 3 weeks
    • starting (1st publication) at least 21 days before sale
      

Note: A Sheriff’s sale may only be continued twice within 130 days of the original sale date without sending new notices, as long as the Notice of Continued Sale is filed on the docket. If a sale is postponed more than twice or longer than 130 days, Court approval is needed to waive additional service. Some Judges will require the Plaintiff to re-serve all parties with the new sale date. Any postponement Orders must be reviewed to determine if new service was required.

• Rule 3129.2 Affidavit attesting to completion of service filed on docket with necessary proofs

Post Sale

• Sheriff’s Proposed Schedule of Distribution Filed within 30 days of Sale
  • Exceptions/Objections not filed within 10 days of Proposed Schedule or Exceptions/Objections disposed of, including any appeals
    

• Recording and review of Sheriff’s Deed
  • No Motions/Petitions to Set Aside Sale filed before recording of Sheriff’s Deed or all Motions/Petitions disposed of, including any appeals
  • No Motions/Petitions to Set Aside Sale filed within 6 months of the recording of the Sheriff’s Deed or all Motions/Petitions disposed of, including any appeals
    

Note: If the USA was named as a defendant, they have 120 days to redeem if it was an IRS tax lien, and one (1) year to redeem for all other liens. See 28 U.S.C. § 2410(c)

• Property vacant or any ejectment actions successfully completed

Bankruptcy

Note: Due to the provisions of the automatic stay, any bankruptcy filing will stay the action whether or not notice is received by the Plaintiff, their attorney, or the Sheriff's Office. A bankruptcy filing made 10 minutes before a Sheriff's Sale starts would invalidate that sale. In such a scenario, the Sheriff's Sale should be set aside and any Sheriff's Deed stricken before a resale is held. Likewise, a bankruptcy filed after the Sale was held, but before the Sheriff's Deed was recorded would stay the recording. The recording of the Sheriff's Deed is the final act of the Sheriff's sale process.

• If bankruptcies filed during foreclosure, for each bankruptcy, either stay was lifted or BK was dismissed before FC continued.

Cross Reference

Foreclosures in Pennsylvania