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Judgment Enforcement – The Step-by-Step Course

Method 1: Creative use of foreclosure and sale records
Previously (before the recession) I worked
with a real estate person to cross reference
foreclosure and sale records with judgments
AND upcoming sales with judgments. We split up
the work, and the income.

For example: Every day she got a new list of about 35 people who
were just put into foreclosure or who were about to sell their home. Her
job was to run the owners of the property on TLO or another database, to see if there are
judgments against the owners. If there were judgments, I contacted the creditor to take
assignment. I might even buy the whole judgment outright for a fraction of its value.

Buying Judgments Outright.

Rather than “take assignment,” on a future pay basis, you can buy the
judgment outright. I don’t recommend doing this when you’re just starting out.
There are negative things that you may miss. Best to “take assignment” when
starting the business. (See Lesson #19 on the Forum Learning Annex.)

Phone Call to a Creditor when you want to buy a judgment:

If you locate a property in default or foreclosure, maybe call the creditor to purchase it.

“Mr. Jones, my name is Peter Gilboy, and I’m in the business of buying judgments. I’m
in your area and see that you have a judgment that’s 5 years old for $17,000. I’ll can have
$500 in your hand in an hour.”

Then, take assignment the usual way—with an Acknowledgment of Assignment filed at
the court. Next, I immediately put a lien on the property. I know that most sales will go
through sooner or later, and that many defaults and foreclosures are resolved sooner or

later by refinancing. By putting a lien on the property, the judgment is usually satisfied
when the property is refinanced. The creditor finally gets paid, and I get paid. It works for
both of us.

The reason this works well is that in these instances every debtor we locate has real
property. They have a judgment against them, and a creditor who wants to be paid. We
make it work.

Again, consider this. Now that the economy is recovering, once again defaults and
foreclosures and what they call “pre-foreclosures” will be cured, meaning “paid up.” Often

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