With our dour economic situation, the value of judgment leads suffer. The lowest rank of judgment lead is a raw lead. Non-screened judgment leads are those pulled from a court house, or some other data service or source; where no attempt was made to contact the judgment owner.
Non-screened judgment leads are often worth very little for several reasons. Judgment leads have no value when a judgment owner can't be found or when the judgment debtor can't be located, or has died, moved to another country, filed for bankruptcy protection, or is broke. When their judgment debtor is broke, or has expertly hidden their available assets, the lead is nearly always without value. Until a debtor's circumstances is known, the cash value of a judgment may be close to zero.
When a judgment owner doesn't know the truth about their judgment, a judgment lead might have no value. Some judgment owners believe judgments are cash, and will not sell a judgment for any percentage, or split anything with anyone who collects money from their judgment for them. If the creditor overvalues their judgment, it might not ever be collected.
This article is my opinion and is not, legal advice. I am a judgment referral expert, and not a lawyer. If you ever want legal advice or a strategy to use, you should contact a lawyer. Certain judgment owners ask over the telephone "How much will you pay me for my judgment?" Some of them have no idea who their judgment debtor is or where they lived before. The creditor want an instant answer, however an answer could only be found after due diligence is done on their debtor.
Certain creditors learn quickly, when told the reality about their judgment debtor's circumstance. Some judgment owners spend years contacting a huge number of people and companies before they eventually accepted the reality that their judgment is tough to collect. Getting any money back for a judgment is a major win.
The next judgment lead level is a warm judgment lead. This means you have talked to the judgment creditor. This solves two potential problems, as the creditor is found, and they want their judgments recovered. The good part is the creditor might know something on their judgment debtor. The bad news is the creditor may be new, and in a shopping mode, where they begin believing they will benefit by shopping their judgments to, at least 20 enforcement solutions.
What the creditor needs to learn is, judgment recovery is most often difficult, courts are slow, and it is costly and risky to enforce judgments. The average judgment sells for 2-8 percent cash up front or 50/50 future pay recovery, where the judgment owner gets paid after funds are collected. Unfortunately some creditors over-value their judgments wildly, and that alone, can keep them from ever collecting any money. Many judgment owners will not accept the reality about their judgment, and waste a lot of time and will never get some money from their judgment.
The ideal creditor has already tried to settle with their judgment debtor, and were lied to and not paid. Then the creditor spent a bunch of time and money attempting to collect their own judgment. This kind of real-world experience quickly shows the truth. It can take some judgment owners longer to learn and accept the truth about their judgment situation, than it did to win the judgment.
The best level for leads are hot, those where the creditor has sent in a complete package. A complete package is a copy of their judgment, the judgment owner's contact information, and info about the debtor. If the creditor's package is complete, the only things remaining are the debtor's situation, and the beliefs of the judgment owner.
An ideal judgment lead includes a complete package, and the judgment owner has awareness of the reality of getting a judgment recovered, and they're done shopping. Judgments do not improve with age, not in the current economy. Better to start early, it is usually a long chess game. Smart judgment owners find the right option, and take a first step quickly.
How can you get paid for leads? There are two ways, you can sell raw leads, however nobody pays much for them. The better the lead is, the higher value it has; yet the full value of the judgment lead is not known until the judgment is recovered. Judgment brokers pay you half of what they are paid.
The more you research the judgment situation on a judgment lead, the more your judgment lead might be worth. Although a raw lead is worth a dollar or so, you might increase its value by contacting the judgment owner. When you discuss with the judgment creditor, who their debtor is; and be sure that the creditor knows that judgments do not enforce themselves, and their debtor owns some assets, then you will have a valuable lead.
As our economic situation is bleak, there are far less good judgments out there. Often if a judgment has not been collected, there is a good reason. Reasons include the judgment was already vacated, on appeal, their debtor went bankrupt, the judgment debtor is broke; or there are multiple judgment owners, and one won't agree to sign paperwork to let their judgment be enforced, etc.
Even for valuable judgment leads, there isn't an active market to buy them, except with a judgment broker. About half of valuable leads become worthless because the judgment owners are not willing to split with anyone who collects their judgment. I have talked to creditors that told me "I would rather let my judgment expire than share any part of it to have it recovered".
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