amf

home loan and old jugment

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i have a old jugment from 1998 for 11000 in nj.now my credit report is clear.i want to get a loan for a house.how the lenders can discover old jugments if not on my credit report; the house i like to buy is in another state.thanks

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Part of the process of purchasing involves checking for liens, judgements and other title issues against not only the seller - but the buyer too.

The lender will have the title co (or attorney) check for judgements against you because the judgement will attach to the property when you purchase it. This creates a problem for your lender. All lenders check to see if you have a judgement before issuing the loan. AND right on the 1003 (mortgage application) you answer a question about ever having a judgement filed against you. If you say no, and the answer is yes, it is mortgage fraud.

Can you can negotiate a settlement with the judgment holder to get a satisfaction? If so, do it before you even begin the house hunting process. Don't mention the house hunting process to them at all or they will stick it to you in the negotiations. Remember judgements accrue interest since the inception and yours has been in effect since 1998. There are attorney's that can do an excellent job of negotiating a reduction with a lump sum payment in exchange for a satisfaction. If you don't have a lump sum, they may consider payments but you lose leverage. Naturally the goal is to get the satisfaction with the smallest cash payout they will accept. Have a reason why you want to clear this after 12 years - without telling them you want to buy property/house etc.

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what if i say on the aplication i dont know if i have one and that is the truth.i suspect i have one for 11.000.also if i am curent with my mortgage payments is it still fraud;is it to late to try to vacate the jugment;thanks

Edited by amf

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If the judgment was entered in 1998, the lien has already expired. Judgment liens in New Jersey are extinguished 5 years after it is recorded.

OP, Usc could be right - but check to see if they have the ability to renew judgements in your state. In my state they can renew the judgement easily. I don't know your statutes - but it is worth checking with an attorney if you can't find it online easily.

Judgements are public record easily accessible online in most jurisdictions (court records site), you can check under your name for recorded judgements against you in the county in which you reside (or did reside) when the judgement was issued.

Also lenders/attorney's and title co's have access to other data bases besides your credit report - for example: LexisNexis keeps all kinds of personal data about you in addition to the normal credit reporting items. :shock:

Edited by Denita

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New Jersey Statutes of Limitation

Conversion of an instrument for money: 3 years, (N.J.S.A.12A: 3-118(g)).

Sale of goods under the UCC: 4-years, (N.J.S.A. 12A; 2-725).

Real or personal property damage, recovery and contracts not under seal: 6 years (N.J.S.A. 2A: 14-1).

Demand Notes when no demand is made: 10 years. If demand made: 6 years from date of demand, (12A: 3-118(B)).

Obligations under seal for the payment of money only, except bank, merchant, finance company or other financial institution: 16 years, (N.J.S.A. 2A: 14-4) actions for unpaid rent if lease agreement is under seal, (N.J.S.A. 2A: 14-4).

Real estate: 20 years, (N.J.S.A. 2A: 14-7); Judgments: 20 years, renewable, (2A: 14-5); Foreign judgments: 20 years (unless period in originating jurisdiction is less), (2A: 14- 5).

Unaccepted drafts: 3 years from date of dishonor or 10 years from date of draft, whichever expires first, (12A: 3- 118©).

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for how long the courts keeps civil records;also if is 14 years old can i vacate it or its to late to apeal.i never served with papers

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what if i say on the aplication i dont know if i have one and that is the truth.i suspect i have one for 11.000.also if i am curent with my mortgage payments is it still fraud;is it to late to try to vacate the jugment;thanks

Looks like your judgement can be valid up to 20 yrs based on your previous post.

As to what you have posted in bold above: do you currently own a property?

If so, when you sell it the judgement will be paid out first before the mortgage and any other closing costs in order to deliver clear title to the buyer. So if you sell the property before purchasing another one, the judgement will be paid. The question is for outstanding judgements, so if you have a paid one, then the answer would be no. The question on the mortgage application is a yes or no question with a section for explanations below the series of questions. You can see a standard mortgage application in this link: https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/1003.pdf

Someone familiar with your area will have to answer your question about vacating the judgement and the grounds appropriate to vacate it. 14 yrs later is quite a long time to contest a judgement.

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If you don't own property, then you aren't making mortgage payments so proving you are a good risk with a judgement by using mortgage payments does not apply (referring to your post #3).

Because you don't already own property - you are in a very good position to negotiate the payoff of your judgement. Don't mention that you want to clear your credit in order to buy property - that will hurt you in your negotiations.

Make sure you get a satisfaction to record once you are able to pay them off. If your judgement started at $11k it is probably much higher now with the accrued interest. Take care of this before you even get a mortgage preapproval. The judgement holder will see mortgage inquiries and hold your feet to the fire if you do it in the wrong order. Good luck with your negotiations. You might need a consumer attorney to help you.

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Judgments in New Jersey are good for 20 years with a simple revival action required to gain an additional 20 years. So, judgments can stick to you for 40 years.

--------------------------------------------------------------

399 N.J. Super. 63; 942 A.2d 878

ADAMAR OF NEW JERSEY, INC., PLAINTIFF-RESPONDENT, v. DAVID MASON, DEFENDANT-APPELLANT, DOCKET NO. A-2021-06T3

SUPERIOR COURT OF NEW JERSEY, APPELLATE DIVISION

January 24, 2008, Argued

March 19, 2008, Decided

This appeal involves the narrow issue of whether a valid New Jersey judgment that remains unpaid with no outstanding impediment to judicial enforcement can be extended for an additional twenty years by a timely motion for revival under N.J.S.A. 2A:14-5. The trial court granted the creditor's motion for renewal of its judgment, and we affirm.

...The court found the creditor proved the following elements necessary to revive a judgment in compliance with Kronstadt v. Kronstadt, 238 N.J. Super. 614, 616-18, 570 A.2d 485 (App.Div.l990): (1) the judgment is valid and subsisting; (2) it remains unpaid in full; (3) there is no outstanding impediment to its judicial enforcement, e.g., a stay, a pending bankruptcy proceeding, an outstanding injunctive order, or the like; and (4) the action to revive was commenced within twenty years after the date the judgment was entered...

....We therefore hold that the Legislature established a twenty-year term for New Jersey judgments, which can be extended for an additional twenty-year term, provided the creditor files a timely motion to revive and satisfies the Kronstadt elements....

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They can be enforced for 20 years. But Liens die in 5. I do not think liens can be renewed. You should not have a judgment lien anywhere if the judgment was entered in 1998.

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They can be enforced for 20 years. But Liens die in 5. I do not think liens can be renewed. You should not have a judgment lien anywhere if the judgment was entered in 1998.

Usctrojanalum, it doesn't matter -he doesn't own property so the lien is a moot point. He owes for the judgement. The longer he lets it sit, the more he has to pay. He needs to take care of it before he buys a property in order to get a mortgage.

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Usctrojanalum, it doesn't matter -he doesn't own property so the lien is a moot point. He owes for the judgement. The longer he lets it sit, the more he has to pay. He needs to take care of it before he buys a property in order to get a mortgage.

The judgment will not show up anywhere though. It's not going to be on his CR since it falls off after 7.5 years and it will not show up as a lien on a title search after he owns a piece of property. So if the OP needs to answer the question are there any possible judgment liens against you, the answer is no.

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No, what you are suggesting is mortgage fraud.

He has an outstanding judgement. The judgement can be/will be found BEFORE he gets the loan. This is done in the normal course of processing the loan. Once the underwriter see's he lied on the mortgage application - no loan will be issued.

It does NOT matter that it is not on the credit report - it will show on the other databases that the lenders use.

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The lender will ABSOLUTELY do a search for judgments prior to commitment to provide funding. I have a very common name, so for me this "step" prior to closing is always a confusing one involving affidavits that the list of judgments are not mine. They even pulled up my bankruptcy from seven years ago- it made the list.

fyi, in some states, after-acquired property is available for judgment creditors to attach.

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Read the link for the mortgage application above - the official fannie mae application that is used by lenders everywhere (even on FHA loans).

It DOES NOT SAY Judgement liens at all. It asks if there are any outstanding judgements. Look at section VIII (a) under Declarations.

Don't get the OP into further hot water by giving bad advice - having him commit fraud is bad advice no matter how thinly you slice it.

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The lender will ABSOLUTELY do a search for judgments prior to commitment to provide funding. I have a very common name, so for me this "step" prior to closing is always a confusing one involving affidavits that the list of judgments are not mine. They even pulled up my bankruptcy from seven years ago- it made the list.

fyi, in some states, after-acquired property is available for judgment creditors to attach.

Absolutely. This is standard. The judgements are public record - whether they are on your credit report or not.

It is very common, especially with common names, for the buyer to sign an affidavit stating that he is not that person with the same name that has the judgement and/or lien or other encumberance. Naturally, he can't sign the affidavit if he is the person with the judgement. :shock:

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Absolutely. This is standard. The judgements are public record - whether they are on your credit report or not.

Again, how do you find this public record without a lien or it being reported? The only way I can think of is having a person physically go into a Court House or Clerks office and pull every file from 1998 and do a name/address search.

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How the judgment is going to be found when it's not on a credit report and is no longer a valid lien?
Its easy. I use LexisNexis. I can find judgments from 30 years ago. Lenders and title insurers have their own systems. There is no less than a half dozen companies that will provide this service. Credit reports are the tip fo the iceberg. Bankruptcies are in the public domain forever (not at issue here I know) and it will likely show up any time I apply for a mortgage for the rest of my life, despite it falling off my credit report in 2014.

When $100,000s are on the line, you best be sure that they do searches far beyond credit reports. Oh yah, and they will charge you for doing the search too. But wouldn't you do the same if your money was on the line?

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It's a name search and there are online databases (many) that are used by lenders.

You can even do it yourself if you are so inclined. In our area you can hop online in the clerk of courts, put in your name and every public record will show up going back decades (birth certicates/death certificates etc are a separate type of search).

I'm sure New Jersey has a similar system. If not, there are plenty of private companies that provide it - like lexis nexis in one of their risk packages. Most lenders subscribe to a service that provides the public records online - its a 30 second search. Not the all day at the courthouse search you are stating.

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thanks for the answers.also i like to ask how the collection agensys find your bank account if you never show it to anyone.not write checks to nobody from there

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