Judgment Values
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by: Mark Shapiro
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Word Count: 689
Date: Sun, 19 Feb 2012 Time: 6:52 PM
I'm not a lawyer, I am a judgment expert. This article is my opinion, and not legal advice. If you ever want a strategy to use or legal advice, you should contact an attorney.
Many judgment owners have no clue to what a judgment is really worth to judgment buyers that actually pay money up front for average judgments.
Many judgment owners avoid the truth about their judgments, and believe their judgments are worth their face value and/or guaranteed.
The reality is that judgment payments are never guaranteed, and no judgment has ever been purchased for more than a really substantial discount from their original amount.
Some judgment creditors waste time with flaky companies on the internet, which advertise "banana oil" false promises like "We pay up to fifty percent cash up front for your judgment".
Many judgment creditors squander an incredible quantity of time, offering their judgment for sale for their imagined and preconceived sale price.
That is similar to visiting an auto dealer to purchase a new 2012 Honda CR-V, with a hard offer price of a $10,000 cashier's check.
Any objective person would agree that it is a waste of time to visit dealers with a firm offer of $10K, when no dealer would sell a new CR-V at twice that much.
Picture someone that wasted huge amounts of time calling on one hundred Honda vehicle stores with a $10,000 cashier's check, getting turned down 100 times. That would be very silly, however that is similar to what some judgment owners do, if they attempt to sell a $10,000 judgment for 5K cash up front, to one hundred possible buyers of a judgment.
It doesn't matter how many judgment buyers one sends that range of a cash up-front offer to, because no buyers of a judgment will pay above the an actual cash up-front value of a judgment.
Typical judgments sell for 1-7% cash up-front, or for a future-payment of fifty percent, after a recovery of any money from the judgment. If your judgment debtor is rich, you can get better rates; yet the price is based on factors beyond your control or wishes.
What are some factors used to price real cash up front judgment sales? Judgment debtors can die, go out of business, get sick, file for bankruptcy, work for cash, change their names, move, set aside the judgment, etc.
These are some other factors that effect prices for cash up front judgment sales, when a judgment is against people or a person:
The age of the debtor, the state they are living in, the county and state the judgment originated at, how common a name the debtor has, whether the debtor has an identical name as one of their parents and grandparents, if they are divorced, married, or owing or paying support, what assets they seem to own, the type of money they receive or earn, what debts they appear to owe, how many other liens and judgments are against them and how much the other liens and judgments total to, their bankruptcy history, the general (and local) economic situation, the health of the debtor, their alcohol or drug problems, criminal records, etc.
If a debtor is a company or business, there are some other factors which affect cash up front prices:
A company's age, their corporate status, the state they are registered in, the county and state the judgment originated, how common a name the company has, if the company is owned by another entity, which assets the company seems to own, the type of business it is, the money they receive or earn, what debts they seem to owe, how many other liens and judgments are against them and how much the other judgments and liens total, their bankruptcy history, the general (and local) economic situation, the size of the company, complaints on the company, their internet presence, etc.
A judgment's cash up front value depends on the factors above, and the judgment buying market. Any cash up front judgment value has nothing to do with any judgment buyer, referral, or judgment broker; or the needs, wishes, wants, or conditions of the original judgment creditor.
About the Author
http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched expertly for free, to your debtor. Mark D. Shapiro, a judgment expert. I pay for leads, and offer the best no obligation free leads for collection agencies, enforcers, and contingency collection attorneys.
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