I have a couple of wiped out seconds that I am exploring the possibility of getting a judgement on. Does anyone have any experience with a good collections Law Firm that they can recommend? I understand that there is a time limit after your loan gets wiped out that you have to file for a judgement against the borrowers.
I would think you can sell those notes for pennies on the dollar... friend of mine buys bad credit card debt.. and pays between 2 cents and 5 cents... to give you a frame of reference.
the trick to bad debt like this is getting the judgment.. ( which can be quite costly) then sitting on it for 9.7 years.. then skip tracing them and garnish and hit their checking account 9.9 years later .. they have forgotten about it.. and are not actively trying to evade creditors at that time.. this is how my friends company works.. they buy 10 to 20 million a year of this paper.. so you can imagine lots of money out for a long time.. but when they start to collect its big payoffs..
its not uncommon that a 3k lien that is 10 years old is now up to 10k.. and they paid 150 bucks for it.. ( now they buy the judgments the credit card company has already done the legal tried to collect and just off loads the paper.. you will have to spend the money to get the judgment.. there might be some debt collectors out there that will do a equity share with you.. that's pretty common in the debt collection industry.. just google around.
I take it these were seconds that were not worth covering.. so you just let them go ??? Peronsally never been a big fan of junior debt.. but that's just me..
@Jay Hinrichs @Victor Nelson;
Thanks for the great info. I know a lot of people that own seconds and get wiped that don't take the next step and get a judgement. Situations can change over time and years from now the defaulted borrower may be in a much better financial situation.
I spoke to someone yesterday that has been in collections for 15 years tell me that when you get a judgement you need to be sure to renew it every 4 years. She said there was a very small to do this.
I plan to run a background check on some of the defaulted borrower. Finding where/if they work would be a huge step towards collecting.
If anyone from BP has had good success with a collections firm I would love some recommendations. I have a firm working on one of my defaulted notes now. It was not wiped out. I decided to go the collections route rather than face the high cost of FC in NY. It is on contingency but I had to pay filing fees/court costs. That was about $700 but perhaps that was high because it was a NY note??? We have a judgement but collecting is another matter. Seems like some of these firms are not too aggressive about finding ways to collect.
I would personally not buy any New York notes tough state
It sounds like you have a firm you're working with in NY. You want a recommendation for what state?
Kansas and Washington and perhaps Mississippi.
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