Want to settle old Judgement

[sscrip]

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

I have a judgement against me from a credit card company in 2008. I have checked recoded documents in Maricopa county and cannot find a renewal of judgement. From what I understand legal courses of action expire after five years of the judgement being recorded. Is this true?

I want to pay the judgement off, but I am worried about opening myself up to garnishments, leins or bank levies again. Can the judgement be revised?

I am trying to refinance a mortgage on a house I received through beneficiary deed. The mortgage company tells me the 2000 dollar balance can be paid through the proceeds of the loan, however they do not seem to be taking into account that the judgement allows for interest and it has been 9 years.

I feel like I may be kicking a hornets nest, if I contact the attorney on the judgement. Is it possible that the debt was sold after this? I could really use some help.

 

[adjusterjack]

Check the court case file. Apparently, the recording of the renewal with the County Recorder is optional. If there is no renewal in the case file the judgment is dead. Just don't expect your lender to understand that it's no longer valid or collectible. As long as the lender "sees" it the lender will want it paid off before approving a refi.

Worse, a judgment for $2000 from 2008 is likely to be double that by now with interest and attorney fees.

You don't risk re-affirming the debt by just contacting the creditor but it might still be best to let sleeping dogs lie and defer refinancing until the judgment drops off your credit report, if that's where it is appearing.

12-1611. Renewal by action

A judgment may be renewed by action thereon at any time within five years after the date of the judgment.

12-1612. Renewal by affidavit

A. A judgment for the payment of money that has been entered and docketed in the civil docket or civil order book of the United States district court or superior court, whether originally rendered by it or entered upon a transcript of judgment from another court, or recorded with the county recorder, may be renewed by filing an affidavit for renewal with the clerk of the proper court.

B. The judgment creditor or his personal representative or assignee may within ninety days preceding the expiration of five years from the date of entry of such judgment, make and file an affidavit, known as a renewal affidavit, entitled as in the action setting forth:

1. The names of the parties, the name of the court in which docketed, if recorded the name of the county in which recorded, the date and amount of the judgment, if recorded, the number and page of the book in which recorded by the county recorder, the name of the owner of the judgment, and his source and succession of title, if not the judgment creditor.

2. That no execution is anywhere outstanding and unreturned upon the judgment, or if any execution is outstanding, that fact shall be stated.

3. The date and amount of all payments upon the judgment and that all payments have been duly credited upon the judgment.

4. That there are no set-offs or counterclaims in favor of the judgment debtor, and if a counterclaim or set-off does exist in favor of the judgment debtor, the amount thereof, if certain, or, if the counterclaim or set-off is unsettled or undetermined, a statement that when it is settled or determined by action or otherwise, it may be allowed as a payment or credit upon the judgment.

5. The exact amount due upon the judgment after allowing all set-offs and counterclaims known to affiant, and other facts or circumstances necessary to a complete disclosure as to the exact condition of the judgment.

C. If the judgment was docketed by the clerk of the court upon a certified copy from any other court and subsequently an abstract recorded with the county recorder, the affidavit, in addition to the foregoing, shall set forth a statement of each county in which such transcript has been docketed and abstract recorded. The affidavit shall be verified positively by the person making it, and not upon information and belief.

D. The filing of the affidavit in the office of the clerk of the court where the judgment is entered and docketed shall renew and revive the judgment to the extent of the balance shown due in the affidavit.

E. Additional and successive renewal affidavits as provided for in subsection B may be made and filed within ninety days of expiration of five years from the date of the filing of a prior renewal affidavit.

F. Recorded judgments that have been timely renewed by a renewal affidavit and successive affidavits, even if such successive affidavits were not authorized by prior law, may be renewed as provided in this section if the prior renewal affidavits were filed within ninety days from the expiration of each successive five year period.

12-1613. Docketing and recording affidavit of renewal; effect

A. The clerk shall docket the affidavit of renewal in the proper docket and shall enter in the proper docket forthwith, after the statement of the original judgment, the date and fact of the renewal, and the amount for which the judgment is renewed.

B. The entry and docketing of the affidavit by the clerk shall renew the judgment for a period of five years from the time of docketing.

C. No lien on or against the real property of the judgment debtor shall be continued by an affidavit of renewal until a copy of the affidavit, certified by the clerk of the court, is recorded in the office of the county recorder.

D. From and after recordation of the copy of the affidavit of renewal, certified by the clerk of the court, the judgment shall be a lien to the extent of the balance shown in the affidavit of renewal against all real property of the judgment debtor, except such as is exempt from execution, including interest in the homestead, for a period of five years from the date of docketing the affidavit of renewal with the clerk.

E. A copy of the renewal affidavit and of the docket entries thereon, certified by the clerk of the court wherein they are filed, may be docketed in any other county of the state in which a transcript of the original judgment was filed, and a copy of the renewal affidavit may be recorded with the county recorder of any county wherein the original judgment has been previously filed or docketed or wherein the judgment creditor desires the judgment to become a lien on real property of the judgment debtor.

 

[sscrip]

Thanks for responding

It is not on my credit report. They found it while doing a title search. I want to repay it, but I am so concerned about trying to settle it. If I go to county records and look at the case file and it is truly expired, does that give me any leverage in trying to settle it? Do you perhaps know where to start? I am assuming it would be best to contact the law firm that handled it? Or should I go ot the original creditor?

 

[adjusterjack]

You mentioned Maricopa County. You might be able to find your case with either of the following search features:

http://justicecourts.maricopa.gov/FindACase/casehistory.aspx

http://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseSearch.asp

I don't recall if you can view case documents online, but you can view case documents on the computers at the various court locations and have them printed out for a nominal charge. I suggest you get copies of everything in the case file.

If the judgment is dead, I don't see why you would want to pay it, but that's up to you. If the creditor missed the boat on renewal then, yes, you certainly do have leverage in negotiating a settlement for a lessor amount. Just make sure you arrange to get a satisfaction of judgment and lien release (that you can record) WHEN you pay. Don't pay first and expect anybody to do the paperwork any time soon. You'll have to demand that they prepare it and have it ready for you when you bring the money.

You can try contacting the original creditor (or the plaintiff in the lawsuit if it's somebody else) but if the original creditor wrote it off it's unlikely that they will give you the time of day.

Get your case file and report back to this thread for further discussion.

 

[sscrip]

The maricopa superior court only shows the original judgement recorded in 2008. The justice court page has no records under my name, Which leads me to believe the judgement is dead. However we both know what happens when we assume things. I will find time to go to the court and get the case file! Thanks again for taking the time to reply. I will let you know what I find in the case documents.

 

[justalayman]

You say the judgment is not on your credit history but it was discovered during a title search. Are you suggesting there may be lien against the title of your property? If so, that is quite different than simply being aware there was a judgment that now appears to be dead.

 

[sscrip]

I am positive. the house passed to me through a beneficiary deed and has not been recorded in my name yet.

 

[justalayman]

I am positive. the house passed to me through a beneficiary deed and has not been recorded in my name yet.

Then what title search resulted in the discovery of the judgment? I can see a financial investigation of your history showing the judgment but if you own no property, at least in recorded deeds, then a title search should not have provided the result you speak of.

Unless there is a lien recorded against an involved property, your judgment would have nothing to do with the property itself and the payment of the judgment should not be incorporated into the mortgage.

Regardless of any of that; from what I have read, the life of
A judgment in California is 10 years and can be renewed for another 10 years after that. That would mean a judgment entered in 2008 is very much active.

 

[justalayman]

The original judgment should have included the total debt st the time, including any attorney's fees or court costs claimed. The debt would be subject to 10% interest annually. I don't know if
It compounds. If not, you would owe $3800 (roughly).

If it is compounded on an annual basis you would owe about $4700.

 

[sscrip]

There must be a miscommunication. I am in AZ, not Ca. In Az a judgement is good for five years, unless it is renewed. According to court records here ( on line) there has been no renewal. I do understand that there is interest attached to the debt. That is why I am hoping to negotiate for the original ammount. I know the creditor does not have to accept that offer, but I am also not in dire need of refinancing, so that helps. The mortgage lender want the judgement paid as a condition of the loan. Even if the debt has expired. I am not against paying what I owe, I am just hoping to settle for less. Thank you so much for taking the time to respond to me.

 

[adjusterjack]

I think the following has occurred:

The judgment was recorded. That makes it a lien on real estate that you own or will own for the enforceable period of the judgment. The lender ran a credit check which includes court records and picked up your judgment. When you applied for refinancing, you listed the property which you now own so the lien applies to that property.

By the way, a search of the County Recorder's documents using your name would have brought up the beneficiary deed. I just confirmed that by running my sister's name on the Recorder's website. Her name came up on the recorded beneficiary deed that I have in her favor.

The lender has tied the property and the judgment to you and, naturally, wants the debt paid in order to qualify you for refinancing.

There is probably a way around all this so that you can, at some future point, refinance without paying off that debt.

But if you do want to pay it off, go ahead and make your offer. Just don't tell the creditor that you have refinancing pending. Once the creditor finds that out, the leverage shifts to the creditor.

One more thing. Is there already a loan on the property that you want to replace or is the home paid for?

 

[justalayman]

There must be a miscommunication. I am in AZ, not Ca. In Az a judgement is good for five years, unless it is renewed. According to court records here ( on line) there has been no renewal. I do understand that there is interest attached to the debt. That is why I am hoping to negotiate for the original ammount. I know the creditor does not have to accept that offer, but I am also not in dire need of refinancing, so that helps. The mortgage lender want the judgement paid as a condition of the loan. Even if the debt has expired. I am not against paying what I owe, I am just hoping to settle for less. Thank you so much for taking the time to respond to me.

Yes, apparently there is miscommunication between my eyes and my brain. Not sure where I got California being involved. My error. My apologies.

 

[justalayman]

A lien cannot attach until the deed is recorded. Op said deed is not recorded yet. There is no way a search could discover the deed unless it has been recorded.

If the judgment is recorded in the county op's property is within, a lien will attach at
That time.

A lien, unless renewed, expires after 5 years. If the creditor wishes to continue the lien, they must first renew the judgment and then they must renew the lien in every county they wish to continue the lien. Those actions would be discoverable on the county registers books.

There is no requirement to honor an expired lien. There is no requirement to pay an expired judgment. If the lien has expired, then there is simply no valid lien to be dealt with. If the judgment has expired and not renewed, there is no obligation to pay it and the lender is not acting properly if
They are even considering the judgment in regards to your financial deal.

Given your statement the judgment has not been renewed, there cannot be a valid lien registered anywhere.

 

[sscrip]

Thank you! You have provided some interesting information. I know that the mortagage company wants a judgement cleared and that is common. I also have a concern about them paying this judgement from the proceeds because it is in their interest to increase the ammount of the loan. I am not against the judgement being paid at face value, by them. That is with no interest or other fees. I will get the records from the case file directly from the courts to be sure, but if the judgement is dead than I should be able to negotiate a settlement and get the judgement satisfied. for the original ammount. I am concerned that the mortgage co will want to pay it interest and all to increase the ammount of the loan. I feel like this because there was a medical lein from the state healthcare program that clearly said on the document that the lein was not against me but against any legal action I may take on the owners of the house where it occurred. I nbever sued because it was through my own stupidity that I was injured. I had to go and get a lein release filed in order to appease them. When they countered they just wanted to pay it outright and it was 15K. Can I stipulate with the mortgage co that I only agree that they pay $2000 to settle the judgement? I would like the loan to go through, but I am not willing to borrow more than an extra $2000. Do you think if I tell them I will walk away from the loan if they cannot settle the judgement, that they will agree to that? Or agree to let me negotiate the judgement on my own? Thanks for your response.

 

[adjusterjack]

Thank you! You have provided some interesting information. I know that the mortagage company wants a judgement cleared and that is common. I also have a concern about them paying this judgement from the proceeds because it is in their interest to increase the ammount of the loan. I am not against the judgement being paid at face value, by them. That is with no interest or other fees. I will get the records from the case file directly from the courts to be sure, but if the judgement is dead than I should be able to negotiate a settlement and get the judgement satisfied. for the original ammount. I am concerned that the mortgage co will want to pay it interest and all to increase the ammount of the loan. I feel like this because there was a medical lein from the state healthcare program that clearly said on the document that the lein was not against me but against any legal action I may take on the owners of the house where it occurred. I nbever sued because it was through my own stupidity that I was injured. I had to go and get a lein release filed in order to appease them. When they countered they just wanted to pay it outright and it was 15K. Can I stipulate with the mortgage co that I only agree that they pay $2000 to settle the judgement? I would like the loan to go through, but I am not willing to borrow more than an extra $2000. Do you think if I tell them I will walk away from the loan if they cannot settle the judgement, that they will agree to that? Or agree to let me negotiate the judgement on my own? Thanks for your response.

Sorry, but whatever the lender "tells" you, or evens writes to you, is subject to change at their whim and when they demand a higher loan amount to close, there won't be a thing you can do about it.

So don't take any chances with that, especially if you have paid any appraisal or inspection fees that you won't get back if the loan falls through.

Your best bet is to defer the refinancing and negotiate the settlement personally (not mentioning the loan process), then pay the settlement out of pocket and clear the debt before going back to the mortgage company, or another mortgage company if you like.

You haven't answered the question as to whether there is already an existing loan on the property.