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Judgments and Mortgages Question


retmar
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While talking to an old classmate today, he posed a question to me I know nothing about. He has a default judgment from somewhere in the midwest. It was filed 10 years ago and just renewed last week. Here is the problem. He was never served and knew nothing of the judgment until he received a collection notice from a CA yesterday. Now, according to California Law, the only way a foreign judgment can be domesticated in California is if the defendant appeared in court. Of course, due to the time frame, he cannot file a motion to vacate. Here is his question. How come a Mortgage Company can force him to pay this knowing the circumstances? At no time can a lien be placed on him as the judgment cannot be enforced in this State. Anyone know for sure?

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Mortgage companies are concerned about judgements, because all property CAN be sold to satisfy the judgement at some point in the future. It rarely happens, but CAN happen.

You have two choices, have your broker use another lender, or pay the judgement off, probably at 25-35 cents on the dollar.

Charles

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Thanks for the response. I'll pass it on. I had already told him to look into attempting to have it vacated due to service as, you never know, he may be able to do it even after the time frame. Supposedly, it has been done before.

I must admit I still wonder how this judgment can be enforced after reading the law. I'll do some checking and share what I find out. The code I'm citing is California Code of Civil Procedure 1713.5.

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  • 3 weeks later...

If your in a bind and need the loan fast, negotiate with the creditor to settle for 20 percent or so...then after it updates as "satisfied" on your CR head down to the court house and file a motion to set aside the judgement. That's what I did, I didnt even have to enter court. I got a call one day and was told I didnt have to appear since the other party didnt contest (they already got their money). Judgement was vacated and no longer appears on my CR.

Ching

this technique likely works only on long standing judgements (4-5 years or so) since they havent recieved any money for those years they likely are not expecting to EVER recieve it. Any money they get is gravy and they will have written off that debt long ago. In fact, when I settled mine it was over 6 years old. They had to search about a week to find my paperwork since it was so far gone. If I wasnt getting the house I could have waited the 7 years and would have fallen off my report. Another year after that it would have been out of statute and they would not be able to renew.....

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  • 6 months later...

To bring this back to the top, I am wondering about something. If it is true a Mortgage Company can force settlement before loan, is it also true a consumer can have the money , equal to amount of Judgment, placed on Deposit until such time as it expires or is vacated? Someone mentioned this on the site as to having done this in the past so they could get the loan. Reason I ask is to get through all of the process, the consumer is left in the air until it is resolved, which could take a long time. Any advice will be helpful. The CA involved is one who constantly violates the laws in collecting, but, there is no recourse to file against them as the SOL has long expired regarding the violations. Also, the questioned debts all occured before 1996 and the Judgment was renewed.

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