topic Re: Judgement in Mortgage Loans

Judgement

IllinoisNative — Fri, 01 Dec 2023 12:04:05 GMT

Hello,

I want to go for a mortgage but had a judgement against me 22 years ago for a car loan. They garnished my wages and then they stopped collecting. I've never been contacted since then...and truthfully, forgot about it. It was a loan for an Oldsmobile. They are now out of business.

Will this prevent me from getting a homestead loan in Florida? The judgement was in Illinois.

Thank you!

Re: Judgement

JoeRockhead — Fri, 01 Dec 2023 12:06:45 GMT

Being 22 years ago, it is long gone from any reports so it's like it never happened. Best of luck on your loan.

Re: Judgement

IllinoisNative — Fri, 01 Dec 2023 14:05:08 GMT

Thank you! I was concerned because I was reading how the lender can renew the judgement every seven years possibly lasting up to 27 years...lol.

I appreciate your feedback!

Re: Judgement

JoeRockhead — Fri, 01 Dec 2023 14:32:05 GMT

In some states they can go on (be renewed over and over) forever. If it was renewed, they are required by law to inform you/serve notice of it. Otherwise, if they failed to renew it, they forfeit the right to enforce, or collect on it... I'd hope you've verified it's not on your credit reports.

In Illinois, it's true that it has to be renewed within 7 yrs but, their law says instead of expiring with no recourse/revival, it goes dormant and can be petitioned to be revived up to 20 years from the date of it's entry. If you've heard nothing by now, I'd say it's long forgotten as I said originally.

Re: Judgement

IllinoisNative — Fri, 01 Dec 2023 14:38:57 GMT

Awesome, thanks! I have a mortgage lender that wants to do a title search, etc. Found a house. Just panicking. Thanks again!!!

...and it's not on my credit report.

Re: Judgement

pizzadude — Fri, 01 Dec 2023 20:41:18 GMT

Agree with the others that you should be fine moving forward with the mortgage approval process.

However -- there is always the possiblity that you might be contacted by a junk debt CA attempting to collect on this zombie debt. If that happens you should be good to ignore them, send a no-contact letter, or C&D. Credit reporting wise, nothing should hit your reports related to this as it is waaaaay past the CRTP.

Re: Judgement

IllinoisNative — Sat, 02 Dec 2023 03:01:57 GMT

Thanks, pizzadude!

Re: Judgement

ShanetheMortgageMan — Tue, 05 Dec 2023 06:23:45 GMT

If it was me I'd contact the county clerk's office the judgment was recorded in and asked if it was renewed/revived.

Re: Judgement

IllinoisNative — Wed, 06 Dec 2023 18:31:13 GMT

Thank you, everyone. I actually paid for a service to check my history. Everything came back clean.

I went ahead with the mortgage and everything is good to go. They just completed the title search. I'm waiting for the appraiser's report today. We're scheduled to close on 12/20/23. Yay!

Re: Judgement

dawnaree — Tue, 12 Dec 2023 19:09:22 GMT

What service did you use?

Re: Judgement

chijo — Wed, 13 Dec 2023 06:54:38 GMT

I see that you got your loan and good for you! After challenging lenders clouding and devaluing my property title using those iffy REMIC trusts I too got a judgment slapped against me in IL. The entity that bought those loan papers after another bank was forced to dismiss their case due to lack of docs on their end that they needed to prevail found another judge who bent over for them. They have iffy pinnings and disbanded their LLC after they won, but were discovered to have tax issues. The old forgot to pay 'em disease. So they never attempted to collect. The last time I looked at statutes IL does not require that they notify you that they renewed the judgment for it to be still valid if you are purchasing property in the same county where the judgment for the original debt was entered. If property is in another county they would have to file their renewal in that county first. Notification to debtor citizens is sometimes iffy it seems in court matters, whether they are required to by statute or not. Foreclosures happen and hold every day with statutes broken by banksters and court clerks. Don't you try it as a citizen though! LOL In your case it was a vehicle and that info would not apply, but I am including this in case someone else has a mortgage in a similar situation.

FL statutes are very similar to IL's in property matters I found out since a lawyer I was following and learning from works out of FL. They can also renew it every seven years until hell freezes over if they want to. At 9% interest then, but may be higher now. My Lexis Nexis does not show the judgment, nor does my credit report of course. But I understand there are other places lenders look and can see such things. For vehicles I doubt they would go that deep. Florida was horrible during housing foreclosures and often rubber stamped them within a minute with lawyers standing there filing proof that the foreclosure was bogus. So you lucked out I think!

Re: Judgement

IllinoisNative — Thu, 14 Dec 2023 23:42:14 GMT

I used Truthfinder, dawnaree. They found nothing. I actually thought Truthfinder scammed me because I did have a judgement and my wages were garnished. I ended up leaving that job so I don't think the judgement was fully satisfied. Also, I never received notification that the judgement was satisfied.

When the mortgage broker and title company looked at everything, no judgement came up. I'm now closing on the 18th. They just moved up my closing date. I was soooooo nervous.

Re: Judgement

IllinoisNative — Thu, 14 Dec 2023 23:41:32 GMT

Good information, chijo!

Re: Judgement

Gladius — Thu, 21 Dec 2023 11:54:21 GMT

If it was 22 years ago, I doubt if it would show up on any reports or inquries.