Judgment purchasers prefer to purchase judgments which look simple to recover. An ideal judgment to purchase is one that is against a rich person or company with no other debts or judgments; owning many assets for example expensive cars, properties, planes, or boats, with no prior liens or loans on the assets. Unfortunately, very few debtor situations are like this.
Before you buy a judgment, you should know the judgment debtor's circumstances, and check they haven't filed for bankruptcy. My articles are my opinions and are not, legal advice. I'm a judgment referral expert, and not an attorney. If you ever want legal advice or a strategy to use, please contact an attorney.
There are many reasons to buy judgments with a one-time single cash upfront sale. Cash upfront judgment sales have some advantages, including no need to share any possible recoveries made, or needing to talk with original judgment owners. You also get the freedom to make a quick profit; and move on when you choose to, not having to answer to anyone.
One more big advantage of cash upfront judgment sales are that they're accepted in nearly all courts. In some court, states, and with certain judges; assignees of record enforcing judgments with future-pay contracts to purchase the judgments, aren't allowed post-judgment enforcement actions in courts.
A good reason to buy judgments, is to attempt to quickly settle that judgment debt with the judgment debtor. You can try to politely contact the judgment debtor, and suggest settling the judgment debt in a way which saves them a lot of money, however provides you a good profit opportunity. Your goal is to make a reasonable profit soon, rather than starting the often expensive and long enforcement procedure to try to collect the judgment. Alternate reasons to buy a judgment are to later try to resell or recover it, without needing the judgment debtor's assistance.
The right way to buy judgments is to purchase it cheap enough so that you will have a decent chance to make money, either by settling or enforcing the judgment. The problem is that most judgment owners dramatically over-value the actual market worth of their judgments.
Experienced judgment purchasers pay around 1% to 4% for average judgments, if the judgment debtor doesn't seem able to repay even part of the judgment. If judgment debtors own assets, certain judgment buyers will pay more. The fact that bankruptcy filings can quickly make most judgments worthless, is the biggest reason no one pays a lot of cash up-front for judgments.
If you buy a judgment, you need to get the original judgment creditor notarize the assignment of judgment to you; and sign your purchase agreement, to buy the judgment. You should not pay too much, until the judgment gets assigned to you, and the assignment gets recorded in the proper court.
If your debtor won't settle, then you could begin the often difficult and expensive path to attempt to recover the judgment. If you collect a judgment that you bought, keep in mind that recovering every dollar isn't as important as locking in a quick profit, and moving onto the next judgment purchase.
When you get paid, you must satisfy the judgment with a notarized judgment satisfaction stamped by the court, and send the original judgment satisfaction to your former debtor. Keep a copy of the court-stamped judgment satisfaction for your records.
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Don't assign your judgment,
http://www.JudgmentBuy.com - Judgment Enforcement. The free, easiest, fastest, smartest, and best way to recover your judgment money nationwide for 33% or less, worldwide for 50% (Mark D. Shapiro)
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