topic Re: Refinance with judgment - what are my options here ? in Mortgage Loans

Refinance with judgment - what are my options here ?

wa3more — Sat, 23 Sep 2017 13:54:22 GMT

Hi All,

So i decided go go with my credit union instead of Chase, my current mortgage holder, to refinance.

The credit union has found a judgment from 2010 i did not know about but looks like its mine. It's from a business i briefly owned and is about 4k. The credit union says i have to settle this before close or we will settle at close and roll into mortgage. So i contact lawyer who got the mortgage by email offering settlement and heard nothing. So a week later i call . the lawyer says they forwarded to their client to respond and it is another week and still nothing. A week ago, the credit union said hey would ask underwriter if they can just close with this open judgment and then they came back and said maybe we can take care of the judgment at closing.

What options do I have ? How do you take care of the judgment at close if no one wants to take your money ??

wa3more in NY

Re: Refinance with judgment - what are my options here ?

Revelate — Sun, 24 Sep 2017 05:55:15 GMT

First step would be to look up the SOL in NY for said judgement: I think in some states it might already be obsolete and IIRC NY may be one of the more friendly jurisdictions actually.

I'd post in Rebuilding about addressing the judgement if you haven't done so already, would sort that and then refinance. Awkward situation to be sure.

Re: Refinance with judgment - what are my options here ?

wa3more — Sun, 24 Sep 2017 20:18:24 GMT

thanks revelate.

SOL in NY is 10 years with renewal for another 10. So i'm stuck. But I find it odd that attorney has not received response from client going on second week.

I contacted attorney that got the judgment, i can't even go someone to take my money. Credit union said they would ask underwriting if we can just close with this 4k judgment from 6 years ago. Still waiting for that response.

Re: Refinance with judgment - what are my options here ?

Anonymous — Wed, 22 Nov 2017 02:48:49 GMT

I'm in the same boat. My husband has a judgment for 3600 from 2010 in the state of MS. We live in KY now. We applied at a different back a few months back and when it went before underwriting they found it. We didn't even know it existed until then. So I started researching so I could pay it. It was one road block after another. Eventually I found out the collection agency that purchased it from the original creditor went out of business. There's no other's listed. However that doesn't help. The bank would not take that. I even found out the judgment was expired and not renewed. In the state of MS judgments are good for 7 years and must be renewed before the last day of that 7 years. It was not renewed. That also didn't help. They either wanted it paid in full or vacated. So we backed out of that loan and started over. We hired a laywer ($1500 retainer) and he is getting it vacated. We put in for a new loan and our closing date is Dec 29th at our credit union. However... that date is closing in and the lawyer is doing all he can to get it vacated before then. He's one of the best lawyers in MS. We are hoping he gets it vacated before it goes before the underwriter (which is anytime this week) . I don't know what the outcome will be but we are hoping everything works out in the end. If not we've waisted a boatload of money on a laywer (retainer may not be all we end up paying him because he charges by the hour at $200), home inspection and appraisal and earnest money. But we are in really good shape other than that stupid judgement. But I know exactly how you feel. I had the money and tried to pay but nobody would take it. But I'm sort of glad they didn't because my lawyer told me never to pay an expired judgment. In the state of MS once it's expired and not renewed and it's past the statue of limitations it's no longer due. There's only 2 states that view expired debt this way. I'm not sure how my new lender will look at this but I'm doing all I can to have it vacated so I won't have to find out. Good luck on yours...

Re: Refinance with judgment - what are my options here ?

wa3more — Thu, 23 Nov 2017 22:01:37 GMT

wow , you got lucky. I ended up paying the judgment off but for the amount it was entered in 2011. So the creditor was good and did not ask for the 3k or so of accrued interest.

Their attorney said they just let the judgments sit and collect interest and gamble that some time in the next 20 years , you will need credit. This is why NY sucks with regard to judgments.