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Old Judgement Question


reelnsnook
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I have a judgement that was filed against me on October 17th 2007 in the state of Florida.  It was filed by an attorney for the OC.  The judgement is for $7,104.  I have obtained copies of the judgement.  I looked for errors, but was unable to find any.  Everything is correct(First Name, Last Name, Amount) it does have an old Florida address, which was removed from all of my credit reports.  I was able remove the judgement from one credit report, but it keeps coming back as "verified" with the other two.bureaus.  

 

I now reside in Texas and would like to buy a house as soon as possible.  My questions are, should I leave it alone and let it fall off in October of 2014 or should I try to settle for 10% -20% and agreement to "vacate the judgement" and "paid in full"?

 

I'm concerned that I will stir the hornets nest and they will be prepared to renew the judgement in the state of Florida.  This is the last remaining mark on my credit report and my scores average around 680, so after this comes off I can secure a mortgage.

 

Is there anything else I can try?  Any help is much appreciated!

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I would leave it alone, even if you do get an agreement, it will stay on your report and may well restart the SOL. Any possibe agreement can also possible restart the SOL. Let sleepin dogs lie. If they even smell the fact that you want to settle because you now have money or are going to buy a house, car etc. they won't be willing to settle for any amount. Remember, they paid pennies on the dollar for these account.

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IIRC, judgments in Florida are good for 20 years.  If it drops off your credit report (which it can long before the SOL is up on the judgment itself), and they see you are applying for a mortgage in Texas, they can domesticate the judgment in Texas and execute on assets here.  While they can't garnish in Texas, they can sieze bank accounts.

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CG in TX, I spoke with my mortgage lender and according to FHA guidelines if I enter into a payment agreement with the JC, and make on time payments for three months they will approve me for the mortgage.  I wrote the attorney handling the case a letter and asked to settle for 25% of the amount in return the debt will be "paid in full", vacated, removed from my credit report, and the remaining balance will not be sold to any other agencies.  If they counter offer I am prepared to pay up to 50% of the judgment.  If that is not acceptable, I will try to negotiate 75% of the original debt with payments of $125 being paid until it is paid in full.  This should be enough to satisfy my mortgage lender.

 

Do you think this is the right approach?

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@reelnsnook

 

I honestly believe it would be best for you to speak to an attorney.   A judgment is not the same as a lawsuit.   The plaintiff who wins a judgment has more leverage.   @CG in TX  says that a judgment creditor can seize your bank accounts.  An attorney could tell you exactly what your up against and what kind of offer you need to make.

 

Try contacting the TX Bar Association and ask for their lawyer referral service.   Then ask for a consumer attorney (mortgage attorney?) in your area.  In my state, if I request the name of an attorney from the lawyer referral service, that attorney will provide a consultation at a reduced rate.  You don't have to hire the attorney, but you could get some answers.

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