JUDGMENTS MAY PREVENT THE ABILITY TO BUY OR SELL PROPERTY FOR DECADES
When most consumers learn that there is a money judgment against them,
they instantly think about the debt amount involved. Often, the other
negative consequences of judgments can be just as bad if not worse than
the debt amount owed. Most consumers learn that a judgment has been entered
against them years later when their bank accounts are frozen, or they
receive a wage garnishment notice to their job. A more frightening but
frequent way of learning about a default judgment is when a consumer is
in the process of buying or selling a home. A title report is usually
issued and shows the judgment. The bank and almost all parties involved
in the mortgage process will instantly state that the judgment must be
resolved before the process can move forward. This leaves consumers frantic
about the possibility of losing the dream home that they have worked so
hard to purchase.
The parties involved in the mortgage process are usually not as concerned
with the amounted of debt owed as opposed to the judgment itself as it
is a major red flag in the process. Judgments are so dangerous because
they are valid for 10 years when entered in New York and renewable for
another 10 years. Not being able to buy or sell property for 20 years
is difficult to comprehend. Finding old judgments can be tricky because
they are not reported after the 7-year reporting deadline passes on credit
reports. It is critical to move to vacate a default judgement in this
type of situation once found. Retaining an attorney and filing a motion
to vacate the judgment alone is usually enough to reassure the bank and
other parties involved that the situation is going to be resolved and
that they can move forward. However, the bank will usually want a stipulation
or order showing that the judgment has been vacated. A failure to resolve
an outstanding judgment matter because of a lack of concern for the debt
can have two decades of negative consequences for a consumer.