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Judgements
What are judgments? What are deficiency judgments? What are examples of judgments? Can you please run a few case scenarios how a derogatory or delinquent account turns in a judgment? Can I get a mortgage loan with a judgment? How do I clear up a judgment? Can I vacate a judgment? What are considered judgments? What are the four types of judgments? What happens if a defendant does not pay a judgment? What happens after a judgment is entered against you. What does a judgment for the defendant mean? What is a default judgment? How long is the statute of limitation on judgments? How can you resolve a judgment and get on the road to rebuilding your credit.
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What is a Judgment?
Judgments are court orders stating that a person owes money. They’re typically the result of a lawsuit in which the creditor wins.
What are Deficiency Judgments?
Deficiency judgments happen when the sale of a foreclosed property doesn’t cover what’s owed on the mortgage, and the borrower has to pay the difference.
Examples of Judgments
- Unpaid credit card debt.
- Medical bills.
- Unpaid personal loans
Scenarios That Result in a Judgment
Credit Card Debt: When a borrower stops making payments on their credit card bill, the creditor sues and gets a judgment.
Unpaid Medical Bills: After an extended period with no payment, the medical provider sues and gets a judgment.
Auto Loan Default: The car is repossessed and sold at auction but doesn’t cover the loan. The lender sues for the balance.
Can You Get a Mortgage With a Judgment?
It isn’t easy. Most lenders will not approve a mortgage until the judgment is paid off, but some non-QM loans might allow it if a payment plan is in place.
How to Clear Up (or Resolve) a Judgment
Pay It Off: Simplest way.
Negotiate or Settle: Offer less than what’s owed.
Payment Plan: Some creditors may agree to let you pay over time.
Dispute It: If it was improperly entered or is otherwise incorrect.
Can You Vacate (Get Rid Of) a Judgment?
Yes, under certain circumstances, such as improper service or if it was obtained by fraud.
What Are Considered Judgments?
Debts from unpaid loans, credit cards, medical bills, and deficiencies from repossessions or foreclosures ordered by courts to be repaid are considered judgments.
Four Types of Judgments
- Default Judgment: Issued when a defendant fails to respond to a lawsuit or debt claim within the allowed timeline (varies by jurisdiction).
- Consent Judgment: Both parties agree to terms.
- Summary Judgment: Issued without a trial when the facts of the case are clear, and one party is entitled to judgment as a matter of law.
- Vacated Judgment: A previous judgment overturned or set aside by the court.
What Happens if a Defendant Does Not Pay a Judgment?
Creditors can take further action, such as garnishing wages, placing liens on property, or seizing bank accounts and other assets.
What Happens After a Judgment Is Entered Against You? The creditor may pursue wage garnishment, bank levies, or property liens to collect the debt.
What Does Judgement for the Defendant Mean?
It means the court ruled in favor of the defendant (person being sued), and the plaintiff (person suing) gets nothing.
What Is a Default Judgment?
A default judgment is issued against someone who fails to respond to a lawsuit or debt claim within the allowed timeline (varies by jurisdiction). Thereby forfeiting their right to defend themselves and automatically ruling in favor of the plaintiff(s).
Statute of Limitations on Judgments
Each state has its statute, which varies, usually ranging from five to twenty years. These are often renewable upon expiration.
Resolving a Judgment and Rebuilding Credit
Pay/Settle the Judgment: First step toward resolving debt.
Obtain Satisfaction: File it with the court (or agency responsible for filing this document). So, public records reflect satisfied judgment. Sometimes called “satisfaction.”
Dispute Errors: Contest inaccurate information within credit bureau files about it, challenging validity thereof while requesting removal where appropriate; follow up regularly until resolved satisfactorily.