How To Shortsale Credit Card Judgement
Deal in pre-foreclosure - getting it for a good price - 35K. Only thing is that the owner has an AMEX judgement against her for 29K. Just found out from title search. The judgement is 4yrs old already. House just went into foreclosure proceedings in June.
Any ideas on how to approach a shortsale of this credit card (AMEX) debt? Coz she can't quit claim the house to me in order for me to sell it. And I don't want to pay all the $29K+ to Amex.
We are in Florida. From what I understand, any judgement against you sticks on to any assets you own as well. Any suggestions? Thanks in advance
:-( :-o :-? :-x
You'll have to make them (AMEX) an offer... much like you were devising a compelling argument to a mortgagee...
their judgment will likely be extinguished in a foreclosure... and would be discharged in bankruptcy.
I do this type of thing all the time.
[addsig]
Do you need the seller's authorization to release information signed to allow the judgment holder to speak with you?
Yes you do need an Auth. To Rel. Info from the seller for the judgement holder to speak 2 U.
Shortsalepro, thanks for the advice. Quick question, is it advisable I speak to the Amex rep first or just fax them the offer and then speak to them? I'm leaning towards talking to them and then sending them a written offer.
Is the judgment lienholder actually AMEX, or has it (the judgment) been assigned to a collection firm?
I believe it's been assigned to a collection firm called RMA coz that's who Amex transferred me to. They called it their "legal" department but I believe it's a collection company.
How does this impact a shortsale?
You'll need to gain the release of lien either by full payoff, or negotiated settlement OUTSIDE the scope of the transaction. The mortgagee probably won't agree to accept a short AND allow a substantial payoff to a junior lien.
Mortgagee is not aware of the judgement because it is a judgement against the seller. From what I understand from the title co. since the judgement was passed 4 yrs ago and is against seller, it will stick on to any asset she owns.
Thus my need to shortsale it coz it seriously hampers my deal with MY buyer coz it basically eats away any profit I was hoping to make by flipping it. On top of that, the lady is 80 and she is indigent and now living in a church owned rental for seniors - she's also behind on that rent.
Can credit card companies attach their debt as a lien on title?
Of course. The mortgagee will certainly know about the lien because it will be encumbant upon you to advise them of such.... on the required HUD1. It should also have shown up on their title report when the foreclosure complaint was drafted, and all defendants named.
Did you indicate the property's as-is, fair market value?