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Can Midland do this?


shark13
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Hi all-

 

What a great site.......Thank you for all the help you've given me over the past few yrs. of fiscal repair! My question is this: I have a judgement against me in MA. by Midland (14k). Next court date is 1/6/15 to determine a payment plan. This part I have no problem with.........the court will determine a reasonable monthly payment and life goes on. My gripe is that the date of Chase/Midlands original debt (last date of activity 8/08), falls off my CR in 8/15........again, not a problem. The problem is that Midland just posted the judgment to my CR and claims it will not come off until 2019. Can this be true? I contend that it's the same debt and thus should run concurrent to the Chase/Midland original CC debt of 8/08......and drop off in 8/15, as well. Please know,  Midland also has a lien on my home for the 14k. They are really hurting themselves because I'm getting very poor feedback from potential refi lenders due to this recent blemish to my credit. All other negatives have fallen off or are on the verge of falling off and my FAKO is 689. I'm hoping that this action isn't allowable, yet, I fear it's considered new debt via judgement, ergo, allowed to be reported on CR until 2019.

Any input and/or advice is greatly appreciated.

 

Than you.

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The problem is that Midland just posted the judgment to my CR and claims it will not come off until 2019. Can this be true?

 

Midland did not post the judgment to your credit report.  Judgments are public records just like tax liens and bankruptcy proceedings.  The credit bureaus have web crawling search engines that search public records in court dockets for judgments, tax liens, and bankruptcy.  Once they find a record they match it to a consumer in their database and post it on the report.

 

The debt will report until far longer than 2019.  Public records are the one thing that is exempt from the 7 year reporting period and as long as that judgment is on file with the courts it will report.

 

Midland also has a lien on my home for the 14k. They are really hurting themselves because I'm getting very poor feedback from potential refi lenders due to this recent blemish to my credit. All other negatives have fallen off or are on the verge of falling off and my FAKO is 689. I'm hoping that this action isn't allowable, yet, I fear it's considered new debt via judgement, ergo, allowed to be reported on CR until 2019.

 

Midland is not hurting themselves at all by having a lien on your home.  They are ensuring they get paid for a very large judgment.  Having that lien gives them a huge amount of leverage to ensure payment.  This action is VERY much allowable.  It can be reported until 7 years past the date the judgment is satisfied.  

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Thank you, Clydesmom,  for your response....very enlightening. I completely understand how liens work, what I meant was they are hurting their cause by reporting the negative on my CR because it makes refinancing to pay them much more difficult. That's before you explained it wasn't Midland that posted it. I read that Midland never deletes.........so, I guess I should be happy with Midland negative until 2019? Of course, now getting equity out of my home to pay them just got a lot more difficult. Quick follow up: Does Midland possess the ability to delete the judgement once we settle, or is that strictly the domain of the court system/CRA's?

 

thanks again.......very helpful.

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I meant was they are hurting their cause by reporting the negative on my CR because it makes refinancing to pay them much more difficult. 

 

Yeah, Midland doesn't care if you get a better deal to refinance.  The reality is most people don't refinance to pay off a judgment they do it to improve their mortgage payments so Midland has the leverage if they keep the lien on.

 

I read that Midland never deletes.........so, I guess I should be happy with Midland negative until 2019? 

 

I have also heard that they do not do deletions.  I do not know about happy but you will be living with it.

 

Quick follow up: Does Midland possess the ability to delete the judgement once we settle, or is that strictly the domain of the court system/CRA's?

 

Yes, they do have that ability to vacate it whether they will is anyone's guess.

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Thank you for your insight but, I feel I haven't made my thought clear. I am not refinancing for a better rate for me.........................no, no, the rates now are great compared to 1998 when my first home rate was 12.5%. No, my point, my aim, is to refinance to get the funds to satisfy this judgement and make it go away................and the crazy thing is that by having that newly minted negative on my CR Midland has impeded, or more accurately, is allowing the path to full payment to be deterred by one small trade line. It seems crazy to me......like a catch 22. I have an avenue out of this jam and am willing to exercise it, yet Midland won't budge on the negative trade line to allow me to refinance to pay them. 

Anyhow, thanks for your time and effort, Clydesmom. I've just never seen a conundrum like this before. It almost seems like Midland is going to insist on teaching me a lesson rather than expedite a process to judgement satisfaction. 

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Thank you for your insight but, I feel I haven't made my thought clear. I am not refinancing for a better rate for me.........................no, no, the rates now are great compared to 1998 when my first home rate was 12.5%. No, my point, my aim, is to refinance to get the funds to satisfy this judgement and make it go away................and the crazy thing is that by having that newly minted negative on my CR Midland has impeded, or more accurately, is allowing the path to full payment to be deterred by one small trade line. It seems crazy to me......like a catch 22. I have an avenue out of this jam and am willing to exercise it, yet Midland won't budge on the negative trade line to allow me to refinance to pay them. 

Anyhow, thanks for your time and effort, Clydesmom. I've just never seen a conundrum like this before. It almost seems like Midland is going to insist on teaching me a lesson rather than expedite a process to judgement satisfaction. 

 

You were clear apparently I was not.  I believe that is why YOU want to refinance.  However, Midland's actions are based on why the majority of people refinance which is NOT to pay off a judgment.  The purpose for their lien is not to impede you specifically from refinancing and paying them.  It is to place a lien on a valuable asset to ensure that at some point in time they do get paid i.e. if you sell the house.  

 

The problem you have is less Midland's lien and more the judgment on your credit report which as I explained before is not Midland reporting but the public court house record of it being found by the bureaus.  The lien would become an issue in under writing.  

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Okay, well...... thank you. I got my answer. My final thought is that the negative trade line is superfluous.............because the lien is in tact, the trade line is just piling on. The lien ensures their position with much greater security than any negative trade line could ever wish to. The underwriter/lender would be told of the reason for the refi and the funds would be taken at closing to satisfy lien by lenders' attorney. The negative trade line just throws an unnecessary burden into the refinancing process.............and delays Midland getting paid. I'll try to negotiate the trade line off with settlement offer.........we shall see!

Either way, thank you for your time and valued opinion.

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