Pursuing judgement against evicted tenant

[Ryan Swan]

I recently obtained a judgement against a tenant who stopped paying rent. The total judgement amount is $2,556.00 with 4.25% interest compounding yearly. The tenant is long gone, but I'm wondering if it's feasible/worth it to pursue them for the judgement amount? Is this something that can be handed off to a collection agency and hope that getting anything is better than nothing?

[Bill Gulley]

Judgments must be paid at closing, a lender may require it to go to escrow, if it is a cashout refinance it could come from loan proceeds. The reason is that the judgment can become a lien on the property.

The amount of the judgment is an is an issue as well as what it was from. For 3 years, your rent judgment will probably scare off any mortgage lender when they see it, but borrowers do come up with excuses, "I was out of state when that happened and wasn't aware of it....." and it depends on the person, the rest of thier credit and other underwriting issues come into play. It's not a cut and dry matter.

Ask the clerk of court about how they report and any filing requirements. It will then hit the credit agencies and be on any credit inquiry, any lender, landlords, insurance company, banks opening accounts, employers and so on, many people get tired of paying more, being disqualified and turned down and start paying.

I also suggest you send a demand for payment to the last known address by registered or certified mail, return receipt requested, if it is returned to you, do not open the letter again just keep it with your documents. If you have issues later on, this will show an attempt to collect and let the judge open it.