Howto Buy Orlando Judgments For Just Ten Cents on the Dollar
Would you like a way to be able to create a significant income stream with part time effort from real estate and not have to invest a significant amount of time, energy or money to do so? If you would, one area that you absolutely want to consider is ‘judgment options.’
To understand what judgment options are, you must first understand the judgment process. When you understand how this process works, not only will you see the income opportunity but in particular, you will understand why it’s such a powerful prospect during this current economic downturn.
In any economy, you have people that don’t pay their bills or meet their financial obligations for a wide variety of reasons. Some of them may have lost a job or fallen into tough times. Others are simply deadbeats and have no intention on paying their obligations.
When someone (the debtor) fails to meet their financial obligation, the person they owe money to can take them to court. If the court rules in their favor and determines that the debtor owes the money, a judgment is filed against the debtor.
So what is a judgment? It is simply a legal document stating that the debtor owes such person (that owns the debt) the money; it authorizes such person to take necessary action to collect the debt as allowed by law.
However, when you win a judgment, it does not mean the debtor will suddenly pay you the debt. You still may have to take additional steps to collect the money that is due you.
If the debtor owns property, one step you can take to collect the debt is to file what is called a ‘lien against the property.’ A lien is a hold against the property in question and states a person cannot sell or refinance the property without the lien holder being paid first on their debt.
When you take a judgment and file a lien against the property, it becomes known as a ‘judgment lien.’ This is an excellent way to ensure that you get paid the amount you are owed because you now tie the debt to a secured asset that has value.
With a judgment lien, you have a claim against the property without having ownership of it and without having to foreclose on it.
Most problems judgment holders have is that they don’t know how to collect on the judgment. They are inexperienced in collections and have no idea of the laws under the Fair Debt and Collection Act. Additionally, legal advice is expensive and they may not be willing or able to hire an attorney to get the advice they need. As such, there are many judgment holders willing to sell their judgments for pennies on the dollar. They understand that it’s better to get some of their money returned rather than to receive nothing at all.
If you have the money to spend, most certainly buy judgments for yourself! It can be a very worthwhile investment and one in which you can make a significant return on your money.
As an example, suppose you find a judgment for $10,000. You negotiate to purchase that judgment for $1,000. By doing a little research, you discover that the debtor owns a house. You take that judgment and file a lien against the house. 6 months later, the debtor refinances the house. Out of their proceeds from refinancing, the lien will be paid first before they receive any money from the refinancing. You’ll receive your $10,000, thus making $9,000 in profit from the $1,000 investment.