Judgement...settlement negotiation?

[stagefoursurvivor]

In the process of attempting a mortgage refinance I found out a lender turned over a $40K debt to a collection attorney who placed a judgement on our home 3 months ago while I was hospitalized for 2 months.

I have learned this firm is very difficult to deal with and my question for the experts here, should I hire my own attorney to negotiate a settlement and get this judgement removed?

At this point, I could only offer about half, $20K, to settle. The other option is bankruptsy and they'd get little or nothing but, I would prefer not to go that route. We currently have roughly 35% equity, $150K, in our home. A straifgt refi would save us about $6-700/mo.

If we can agree on a mutually acceptable settlement I want to be sure the judgement is removed and finished ASAP.

Any opinons welcome

[StartingOver10]

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@stagefoursurvivor wrote:

In the process of attempting a mortgage refinance I found out a lender turned over a $40K debt to a collection attorney who placed a judgement on our home 3 months ago while I was hospitalized for 2 months.

I have learned this firm is very difficult to deal with and my question for the experts here, should I hire my own attorney to negotiate a settlement and get this judgement removed?

At this point, I could only offer about half, $20K, to settle. The other option is bankruptsy and they'd get little or nothing but, I would prefer not to go that route. We currently have roughly 35% equity, $150K, in our home. A straifgt refi would save us about $6-700/mo.

If we can agree on a mutually acceptable settlement I want to be sure the judgement is removed and finished ASAP.

Any opinons welcome

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You are between a rock and a hard place.  One of the reasons they attached the judgment to the property (in some places it is an automatic attachment) is to prevent exactly what you want to do - negotiate a settlement. You could try to negotiate, but they have the upper hand because you have 35% equity in your home and if you refi, they have to be paid. Do you have a homestead protection provision in your jurisdiction?  That might or might not help you.  

Have you researched the Bk restrictions in your state? There are equity restrictions in some states and other guidelines including income restrictions. 

[stagefoursurvivor]

Thanks for the reply!

Your questions are the reason we may better be served by retaining our own attorney because I'm not sure about the answers. 

This doesn't appear to be the time to play "jail house lawyer" and negotiate myself.

[Anonymous]

Im trying to settle soon on an old auto, I wish you well