Questions on paying a Judgment

[Anonymous]

Hi all,

My wife and I have a judgment on us from 2000 and the Creditor is Ford Motor Credit. It was for a car that we could not afford due to an unanticipated change in our finances and it was either the car or our apartment rent and we chose the apartment. We made arrangements with the creditor over the phone ( wish I got in writing as we would not be having this discussion) that would allow us to return the vehicle and they would then sell it and we would be responsible for the difference. Standard repossession stuff I know. The arrangemnet was for us to continue to make payments for the same duration but based on the new lowered debt but as a condition we would still have a repo on our record. Unfortunately all of this was told to us in error (their term not mine) and as soon asthey got the car, they sued and got a judgment and attached legal fees etc to it. Well this kind of upset me so I foolishly shined them on and ignored them until 2007 when I learned the errors of my ways. Since 2007 I have been paying them and have paid over 8100 dollars and I just found out that NONE of the money I have been paying them is going to the principal.....@#$#@$!! 

This is quite upsetting to me and I am now in a position whereI am trying to buy a home but the Judgment is showing up on a title search for my wife and I. Can anyone here recommend a reputable judgment settlement specialist they they have direct positive experience with? I want this gone but am worried that if I try it myself I'll miss something.Thoughts???

[Anonymous]

First thing Id do is talk to someone at the courthouse where it was filed. They may be able to discuss how a judgment works a little better.

Secondly, I think it can be be removed from your credit reports if enough time has passed. But it still keep you from buying a house, most likely.

Thats amazing that none of the payments made it to the principle. I think Id be suing the hell out of someone.

[HoldingOntoHope]

I had the same type of situation last year in that I had a judgment I was making small payments to and wanted to purchase a home. The mortgage lender (USAA) told me I was going to have to clear the judgment to be fully approved. I contacted the law firm to whom I was making payments and simply asked them what would they accept as a lump sum settlement. I did not tell them I was buying a home or suggest a settlement price to them.

Bottom line-the judgment debt outstanding was about $13,500 and the gentleman said "We will settle this for $4500." I told them to mail it to me in writing and I would cut them a check within 2 weeks. They did, I did and less than a month later I got a notice of satisfaction from the court which I forwarded to USAA. That hurdle was cleared and we moved forward on the mortgage. YMMV.

[Anonymous]

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@Anonymous wrote:

Hi all,

My wife and I have a judgment on us from 2000 and the Creditor is Ford Motor Credit. It was for a car that we could not afford due to an unanticipated change in our finances and it was either the car or our apartment rent and we chose the apartment. We made arrangements with the creditor over the phone ( wish I got in writing as we would not be having this discussion) that would allow us to return the vehicle and they would then sell it and we would be responsible for the difference. Standard repossession stuff I know. The arrangemnet was for us to continue to make payments for the same duration but based on the new lowered debt but as a condition we would still have a repo on our record. Unfortunately all of this was told to us in error (their term not mine) and as soon asthey got the car, they sued and got a judgment and attached legal fees etc to it. Well this kind of upset me so I foolishly shined them on and ignored them until 2007 when I learned the errors of my ways. Since 2007 I have been paying them and have paid over 8100 dollars and I just found out that NONE of the money I have been paying them is going to the principal.....@#$#@$!! 

This is quite upsetting to me and I am now in a position whereI am trying to buy a home but the Judgment is showing up on a title search for my wife and I. Can anyone here recommend a reputable judgment settlement specialist they they have direct positive experience with? I want this gone but am worried that if I try it myself I'll miss something.Thoughts???

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Unfortunately, it is not surprising that none of your payments went towards principal.  The debt carried intrest until reduced to judgment and you were also probably assessed court costs and attorney fees.  Once judgment was rendered, most states allow for statutory interest on the judgment -- usually around 10%. 

Probably the best way to handle this would be to contact the judgment creditor's attorney and see what it would take to settle.  There is, however, some risk in that they might open their eyes and decide to start looking for mean ways to enforce their judgment.