Do I still file a judgement? - Posted by Nate-WI

Posted by Nate-WI on April 19, 2006 at 18:29:01:

Where is the chat?

Nate-WI

Do I still file a judgement? - Posted by Nate-WI

Posted by Nate-WI on April 18, 2006 at 19:43:15:

Hey all,

A few weeks back I posted about my first cash cow and how I was trying to work something out with my note payors. Long story short…they skipped town and left me with an absolute mess of the MH. They owe me about 3K for the note plus damages incurred. I’m gonna take some digital photos of the place before I sell it again.

My question is do I file a judgement for what they owe PLUS repairs to fix the property? Do I need to get some bids for the repairs to show the courts? Anyone have an idea of who you contact to file a judgement? I’m gonna call the courthouse and play “tag” with everyone there till I get the right person. Anyone have any advice on how to proceed? BTW…I have an approved buyer who is gonna buy the house as is for 2500 bucks in a cash deal. It must have been the dog@!#@ on floor that was the selling point :slight_smile:

Nate-WI

Re: Do I still file a judgement? - Posted by Tom-FL

Posted by Tom-FL on April 19, 2006 at 07:55:48:

Hi Nate - WI,
Just curious??? When you first meet the “Skipped Town Note Payor” did you run a credit check on them? IF you did run a credit check what was their credit score?

Tom-FL

Blood from a stone, thrown into the ocean - Posted by Tony Colella

Posted by Tony Colella on April 18, 2006 at 22:07:40:

As the old saying goes, you can’t get blood from a stone. They couldn’t make the monthly payment to you, they certainly aren’t good for the $3k. Spending more good money chasing bad is a waste of time, money and frustation.

You got the house back, that was what you wanted and needed. Keep your sanity and get used to this. Sell again and move on.

Even if you did sue, these folks have fled town with what little money they do have.

Typically in order to get a money judgement, you need to show personal service of the suit. How the heck can you do this if they fled? Again, not worth the time. The best the court can give you is possession (which you already have).

How you determine default and abandonment and your personal tolerance for risk is up to you but keep your money moving and your sanity intact. Move on to the next buyer and the next deal.

Tony

small claims - Posted by Steve-WA

Posted by Steve-WA on April 18, 2006 at 20:05:47:

“filing a judgement” is a misnomer - a judge grants a judgement, a lawsuit will prompt that.

Find out what the limit is for small claims in your county, and talk to your clerk of court about how to file. This is common - costs a few bucks. But the trick is to find your defendant, and get them served. file for the max - if th ey dont show, then you automatically get a default judgement - may not mean much, if they aint got no money.

Or, if they DO show, then you might be able to adjust your claim to what is really owed.

Re: Do I still file a judgement? - Posted by Nate-WI

Posted by Nate-WI on April 19, 2006 at 13:22:31:

I have never ran credit before. The park does this for me along with their due dilligence. I don’t know what their score was. They were 19 and 20 so who knows if they even had any credit built yet.

Nate-WI

Re: Do I still file a judgement? - Posted by Tony Colella

Posted by Tony Colella on April 19, 2006 at 10:22:19:

I rarely if ever concerned myself about a Lonnie deal buyer’s credit score. The whole basis for a Lonnie deal is that they buyer does not have the credit to buy a home new. Under today’s interest rates, most anyone with decent credit can buy a house.

I knew when that if they called, their credit would be banged up. That’s why the needed me. That’s why I could make a profit.

Although I only rent the mobiles and land now instead of sell, the same holds true. I am more concerned about past rental history and their job history.

With Lonnie deals, I knew I would get most of them back so I had to learn to let the bad ones go. Crunching the yield numbers on the second sale always helped me sleep.

We have to get over the idea of “THEY OWE ME MONEY!” and begin to realize we just want the home back so we can sell it again.

Tony

again, principle - Posted by Steve-WA

Posted by Steve-WA on April 18, 2006 at 22:40:17:

while it seems like what needs to be done, if it aint making you money, dont waste the time.

What I do: If I can get them sesrved, I may file sc, to show that I do what needs to be done, and there will also be the judgement on their record - one day, who knows. Would I pursue for garnishment? Nah, haven’t yet. Not worth my time, and for a couple measly thou, it aint worth the stressw.

I want to be done with job-related stress. I worry very much about that.

;-)3

Re: Do I still file a judgement? - Posted by Nate-WI

Posted by Nate-WI on April 19, 2006 at 13:25:52:

I’m having a hard time with your explanation Tony. Someone owes you money so you turn the other way? Isn’t it a matter of principle? How hard is it to file a judgement? I’m not nieve enough to think that they will pay me…but at least I can file so IF they do go for another type of loan (and they will of course) then I’m standing in the middle.

What do you do for your rentals? If they don’t pay for months and you end up evicting do you not file a judgement for unpaid rents or do you walk away?

Nate-WI

Re: Do I still file a judgement? - Posted by Tony Colella

Posted by Tony Colella on April 19, 2006 at 17:56:31:

You are still assuming that you will actually win a monetary judgement. In my area, you cannot win money without personal service. Where and how do you plan to serve them if they have moved to points unknown?

Maybe your area is different but in mine, posting to the door is not sufficient for a money judgement but the court will give us possession. You already have possession so nothing is gained.

Short of the above, I refer you back to my post. There is little more to be said.

Tony

Nate, Nate, Nate - Posted by Steve-WA

Posted by Steve-WA on April 19, 2006 at 17:05:08:

My friend, you REALLY need to read this article - even if you have before, do it again.

I do, and quite often. My “principle meter” often pegs, and when I find myself saying or thinking that “P” word, then i go re-read the Wisdom of Joe:

Re: Do I still file a judgement? - Posted by osupsycho (OK)

Posted by osupsycho (OK) on April 19, 2006 at 14:47:20:

Nate,

I’m not Tony but I think I will take a swing at this. You basically are saying that the reason to do it is for the principle of the matter. Well I know of a lot of people that have gone broke worrying about principles (and I don’t mean principal on a loan :-). What if while you were in court, trying to get a judgement from a person that is never going to pay you, I was out grabbing up all the good deals in your area? Or your miss a buyer because you were in court. The point is that if it doesn’t make you money why do it? Now if you truly think you are going to get some money out of the people that is another matter. For me I am trying to get rid of anything that doesn’t put money into my pocket. (well sort of I don’t plan on getting rid of my wife and son… but maybe I can find a way for them to put money into my pocket instead of taking it out…)

Jad

neat article. thanks -nt - Posted by Rich-Tx

Posted by Rich-Tx on April 20, 2006 at 08:58:25:

Re: Nate, Nate, Nate - Posted by Nate-WI

Posted by Nate-WI on April 19, 2006 at 18:21:31:

I have it bookmarked. Thanks Steve.

Nate-WI

Re: Do I still file a judgement? - Posted by Nate-WI

Posted by Nate-WI on April 19, 2006 at 15:03:44:

I understand your viewpoint. I’m not pi$$ed that this happened as this will turn into a nice cash cow in the end. And if you were in my area as my competition I would send my wife to court on my behalf :slight_smile: so I could beat you to the next deal.

Nate-WI

log in to chat tonight, and we’ll kick your a**! - Posted by Steve-WA

Posted by Steve-WA on April 19, 2006 at 18:26:23:

he he

hour and a half (9 PM EST, 6 PM PST)

;-)3

Kinder, Gentler, Kinder, Gentler NT =p - Posted by Ryan (NC)

Posted by Ryan (NC) on April 19, 2006 at 19:32:02:

NT