In situations where a client is attempting to close on a home it is imperative
that their credit report is free and clear of any judgments against them.
In this case, our client contacted us in a panic because he was attempting
to close on a home and was told that a judgment had come up during the
title search that the bank ran before approval. A judgment in this scenario
is a major red flag for the bank and can lead to the whole deal to break
apart. Our client was made aware that he had a judgment against him from
2006 that was owned by
Palisades Collection, an old and low end debt buyer. The debt was bought and sold multiple
times and was also transferred from law firm to law firm a few times.
The notorious debt collection law firm,
Pressler and Pressler obtained a default judgment against our client in 2006 but was unable
to ever enforce the judgment against our client. Eventually the judgment
was transferred over to the debt collection law firm of
Todd Houslanger and Associates.
Houslanger often receives these files after previous attempts at collection
and enforcement are unsuccessful. We contacted Houslanger’s office
immediately to demand that the judgment against our client be vacated
and that the case be dismissed. Due to the many issues regarding lack
of service, assignment paperwork from the transfer of the debt from firm
to firm and the lack of notice to our client about the transfer of the
judgment from Pressler and Pressler to Houslanger and Associates, Houslanger
and Palisades collection agreed to both vacate the judgment against our
client and discontinue the case entirely. This was a huge relief for our
client as we were able to provide the countersigned stipulation of judgment
vacature and discontinuance to the mortgage broker and bank so that our
client would be able to finalize obtaining the mortgage for his new home.