Not sure if this is the right section to post this, mods please move if necessary. I am wholesaling a property and judgements came up on the title search on both my seller and the previous owners. The totals are for $10k on the previous owners and $2k for my seller. I have a purchase contract for $17k with the seller and an assignment for $4k with my buyer. Would anyone recommend I buy the judgements to move forward with this deal? How do I go about buying these? What if the previous owners dont care to payoff the judgements?
The seller pays them, in order to deliver clear title. You can attempt to negotiate a discounted pay off, rather than "buying" them.
The judgment is an encumbrance on the title if filed properly.
Are the sellers aware the judgments will come off their proceeds?? They may not want to do the deal when they find out.
If you want to offer a nominal amount the judgment holders might release their lien interests on the property for XX proceeds but reserve the right to pursue the remaining balance at a later date.
This is different from releasing and settling to consider the judgment SATISFIED and paid in full. Depending on how old the judgment is an state laws it might can be vacated which comes off the credit report versus showing satisfied.
I wouldn't want to own the judgments although you can buy them sometimes. If a large company owns it likely not as they sell in bulk compared to small companies or individuals who hold the judgments. You just want to negotiate the judgments away and not own them if the deal goes south. Then you would have money sunk in for nothing going after these people.
No legal advice given.
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