Judgements on Credit report

[Jules7777]

What is the name of your state (only U.S. law)? Texas

My husband and I are trying to buy a house. We were told that my husband has a judgement of $871.00 on his credit report from a broken lease in 2004. We called the collection agency to pay off the $871.00, and were told that he really owes $6,000.00. If he owes $6,000.00 why would they only report $871.00 of it as a judgement. What are our options. We obviously can not afford $6,000.00 to them and still come up with our down payment for a house???? Are they allowed to just change their minds on how much he owes????

 

[cosine]

Late fees and interest. That can add up big over 5 years at the high interest rates being charged. You need to determine if your husband was ever served a proper summons for the matter involved.

 

[Texas Pooh]

If it really is a judgment, go to the courthouse where the judgment was obtained and pull a copy of the judgment. The judgment is governed by post-judgment interest rate, set by statute, and there are no late fees. You need to see what judgment rate was set in the order.

You will also be able to see who legally owns the judgment, to ensure you are negotiating with the correct entity.

There is no way a real judgment for $871 rose to $6,000 with legitimate post-judgment interest, which can not exceed 18%, compounded annually. It is possible, however, that the judgment was for $871 in damages, and much more in attorneys fees, which would have been specified in the judgment.

 

[dfromnyli]

wow 18% in Texas? That is pretty brutal lol. So say for instance it is 18% times 5 years thats 90% interest so your balance should only have about doubled. Not be $6,000.00

 

[Tayla]

And the only poster who gave a plausible reply is TexasP.

Two concerns:
1: Was this a default judgment? OR had your husband shown up?
2: Stop talking to the collection agency. Everything in writing! Is the collection agency the one who owns the judgment for enforcement? Chances are NOT. Only deal with the holder of this judgment if indeed it really exist on the books. The judgment docs will be able to give the name and contact information when it was filed.
Some will settle for an amount that is close to the judgment claimed, where upon the judge can consider this a satisfied judgment and close the file.
There again its all based on what research you uncover at the court house.

 

[dfromnyli]

I would like to point out, you would not be able to see who legally owns the judgment by going down to the courthouse. Judgments can be sold every single day, so the caption in the complaint and on the judgment may not actually be the judgment holder.

 

[Tayla]

I would like to point out, you would not be able to see who legally owns the judgment by going down to the courthouse.


Judgments can be sold every single day, so the caption in the complaint and on the judgment may not actually be the judgment holder.

Bold area- Just plain wrong! The court house files according to judge ruling

Judgments can be *assigned* for collection, rarely can they be SOLD without going through the judicial system and legal plaintiff who was awarded this debt . Unless you have data to prove otherwise this poster needs to refer to TexasP's advise.

The poster needs to follow what is listed on their credit report and compare it to the courthouse documents. For this is what the mortgage lender is using so validity and accuracy is key.

 

[dfromnyli]

Judgments can be *assigned* for collection, rarely can they be SOLD without going through the judicial system and legal plaintiff who was awarded this debt.

You have absolutely NO IDEA what you are talking about in regards to the debt collection industry. I've only worked in it for 8 years, so you can take my opinion with a grain of salt if you want. but judgments are bought and sold every single day with little to no court intervention.

**SOMETIMES** in regards to a consumer debt, there are necessary procedures such as notice of assignment and providing the bill of sale if necessary but that is about the extent of it.

Unless you have data to prove otherwise

Assignment of rights under a contract is the complete transfer of the rights to receive the benefits accruing to one of the parties to that contract. For example, if party A contracts with Party B to sell his car to him for $10, party A can later assign the benefits of the contract - the right to be paid $10 - to party C. In this scenario, party A is the obligee/assignor, party B is an obligor, and party C is the assignee. Such an assignment may be donative (essentially given as a gift), or it may be contractually exchanged for consideration.


Is that proof enough for you? That's basic contract law since oh I don't know the 1700's in England?

 

[Tayla]

Sorry Dfromny- Doctors orders, no salt diet here

The information by TexasP remains at least somewhat plausible and adhering to current standards.

Your information is not entirely true or accurate for the state this poster is in.