Dave, could you maybe expand on your statement that “the judgment follows the buyer and attaches to any real estate he wants to buy, in front of his lender”?
The reason I ask is that I am currently suing someone, but the case hasn’t been heard yet. I (like everybody, right?) fully expect to prevail, but I’m concerned about my ability to collect later.
They have real estate in this county, and once the judgment has been rendered, I can attach this. The problem is, the real estate is on the market, and may be sold before I can get my judgment. I think they’ve overpriced it, and the market has slowed, but you never know.
I believe they’re selling in order to buy other property elsewhere. They’re trying to delay the case coming to trial, and I believe the reason is so that they can get the house sold before the judgment, so I’ll have nothing in this county to attach (they currently live in another county). If the judgment will follow them to another county or another state, that won’t be so much of a concern to me. I don’t really care so much about collecting immediately (it will only be for a few thousand), but I do care about being unable to collect at all.
I’ve looked at various options, but nothing seems adequate. Lis Pendens is only appropriate if the title is an issue. There are state laws that permit “pre-emptive” judgments (I’m in California), but they don’t apply in this case.
A buyer of mine is getting ready to exercise his option to purchase. The loan is ready but he has a judgment of about 11k and can’t close because of this judgment. He doesn’t want to pay 11k and would like to fight this judgment but then that would mean the delay of the closing.
His actually option expiration date is in 4 months so he has plenty of time. Me, however, would like to get this deal closed ASAP. I have thought about increasing the price an additional 11k so that we could pay this judgment off at closing but he doesn’t want this route as he believes he has a good chance of winning this case. Is there anything I could do beside giving him this 11k or so?
They show a mile away… or in this case, 2500 miles away. Are we a little anxious to get this thing closed…? Sometimes… no, make that always, when we are in that position, we look at things in a skewed manner, as you are in this case.
There are multiple solutions here… the last of which is the direction that you seem to want to head… I could spout out a few things here, but really don’t know enough about the judgment, or the T/B’s scenario to go off on a “shoot a fish in a barrel Dick Cheney style”, to weigh in on all or some of them now…
So give more details about the judgment, and its origin, age, judgment amount, fees, accrual of interest, type of entity holding the judgment, etc… and more info about T/B, to shrink the size of the barrel… and not the fish.
If there is a judgment, he has already lost his case. He has probably also allowed his appeal period to expire. There is no reason to pay the 11k, as the judgment probably could be negotiated down or purchased. Raising your price 11k is unlikely to fly because of appraisal. Besides, you don’t want to be an enabler. Do NOT let this guy string you along, as it is highly unlikely he can perform.
The good news is that you have several months to find another buyer & you get to keep the option $$$ the current tenant paid.
Re: Buyer has a judgment. Help! - Posted by DaveD (WI)
Posted by DaveD (WI) on March 17, 2006 at 13:27:30:
I would find a back up buyer. Chances are, your guy won’t close. Probably didn’t volunteer that important little piece of info, did he? Didn’t you check him out before you penned the deal?
Most folks think they got screwed all along, and the judgement is unfair. So “of course” he will prevail. Or win the lotto. Or have a “settlement” coming. So what happens when he doesn’t win his judgement case? You better not base your business model on him performing. How do you think I know this?
Yes I’m a little anxious to get this closed because about $180,000 in profit is riding on this.
Buyer has judgment but believes it should have been wiped off during his bankruptcy proceeding. This is a judgment from a credit card company. Judgment was filed in mid of 2003. I don’t know when Buyer filed for bankruptcy but I will ask.
The escrow company stupidly called the attorney for this judgment asking for a payoff so I don’t know if they would be willing to negotiate now or not.
I wonder if it’s possible to put this judgment amount in escrow (instead of paying it off) while the buyer is trying to fight this. This way the bank is protected even if the buyer loses. Have anyone been able to set it up this way?
Negotiate the judgement yourself. Find out the particulars and contact the holder. If you are convinced that it is a good judgement, point out to them that they may get nothing and give them no more than 1/3. If your deal does not go through you still have the judgement at the full price.
Posted by Joe Kaiser on March 18, 2006 at 19:55:16:
No waiting.
The case is available for immediate viewing and whether or not the
judgment was discharged won’t be in question after about 2 minutes of
checking the file.
Or just point the title company to the bankruptcy and let them handle
it.
Re: Buyer has a judgment. Help!= You do it - Posted by DaveD (WI)
Posted by DaveD (WI) on March 17, 2006 at 17:45:24:
So you buy the judgement because you believe in the buyer. OK, a small profit center… you are thinking. Good. Here is the problem: It still follows the buyer and attaches to any real estate he wants to buy, in front of his lender. Ugh, they will say no, don’t you think? Until the judgement is either satisfied or otherwise legally extinguished, he is damaged goods.
Or, are you not in it for the money, and are going to let the buyer pay you off for 1/3? This is starting to look like one of these stars in alignment things. I’d rather find a buyer that can perform. All they have to do is keep their nose clean, and fog a mirror when held under it.