How much will a judgment lower my credit score ?

Submitted by fletch on Fri, 06/20/2008 - 15:00

I did a short sale and had a first and 2nd mortage. The first is 1099 me the diff. The 2nd only got 3k out of 75k and is saying they MAY take 1/2 on a payment plan. Just wondering if I didn't pay, how bad it would be. I live in Flrida so thet can't touch my primary or my pay check. If the send to a collection agency they will only get about 20% so I was thinking to offer them 30% or nothing. Comments ?

Anonymous (not verified)

a judgment can lower your credit score by 50 to 100 points and it will show up in your credit report for seven years, whether the judgment is paid or not. However if the judgment is shown paid in credit report, I think this will have a much lesser negative impact on your credit score. So it is better to pay it off.

Sat, 06/21/2008 - 09:27 Permalink

regardless if it is paid or not, it is still a negative slap in the face on your report.

Sat, 06/21/2008 - 16:55 Permalink

yes, judgement whether paid or not will stay in your credit report for seven years from the date of entry or till the time the SOL in your state has expired. This will no doubt have a negative impact on your credit score. However, a paid judgment is always better than an unpaid one. This is because, if your judgment is paid, your credit score will slowly increase over time.

Mon, 06/23/2008 - 05:41 Permalink

I have stuff on my report that is well past the statute of limitations, I think the seven years is right.

Wed, 06/25/2008 - 01:55 Permalink

Hi goodnatured
Since your SOL has already expired, and still your seven years has not been completed, you need to wait for a few more years for the Seven years to expire. On completion of seven years from the date of entry in your credit report, the listing will automatically be removed.

Wed, 06/25/2008 - 08:10 Permalink

Yeah, I know, I have a few more years to wait, some will fall off this year, even after I paid them off they still reflect negative. I think there should be a nuetral field on these reports that show the accounts paid off there so they at least come out of the negative status. Really there is no incentive to pay them once they have become on the negative side, if they are a closed account and went to a collection agency, because they never move them out of that status. They say paid, but they still remain in the negative colum.

Thu, 06/26/2008 - 04:43 Permalink

That seven year time frame will be up soon enough, some of them will fall off over the next 3 years. In 2010 I will be in good shape, LOL. It has been a long road.

Sun, 07/13/2008 - 23:52 Permalink

Just be patient, you have waited this long, you are over half way there.

Sun, 07/20/2008 - 01:37 Permalink

Hi goodnatured,
It is a good news that your seven years is drawing near. One thing is that don't make any payments on the dues, if the SOL has already expired. It is a very crucial time for you as you credit report will be clear of all negatives after 3 years.

Mon, 07/21/2008 - 08:34 Permalink

I think it will be dropping a bit regardless, I would just wait it out patiently. IMO

Tue, 07/22/2008 - 14:49 Permalink

Hi Goodnatured
I agree with Anthony on this point. Actually most collection agencies asks for some payment for the past dues and once you pay it, your SOL rewinds and they can take you to the court for full repayment. Moreover don't go for any further loans at this point of time. If you have already taken loans try to repay it on time, so that by 2010 the credit report will be entirely clear of bad listings.

Wed, 07/23/2008 - 13:44 Permalink

Well, Justin, the good news is that I don't have any of the negatives that have a balance, last year I concentrated on getting them paid off and did it. They all are reported as paid or settled or paid in full. So there is no outstanding balances on any of them. I don't have to worry about the collection agencies bothering me.

I think that if you have paid them, past the sol or not, that they should drop off sooner, like 4 years versus the 7. I simply fell on hard times and got behind, then they started adding on the late fees and then the over the limit fees and the story goes on and on. But anyway, I eventually took care of them all but not before they could get reported in negative status on my report. I think that if you have paid them, the reporting time should be cut down a few years. Kind of an incentive to pay them.

Wed, 07/23/2008 - 22:23 Permalink

I agree GN. I think it is wonderful that you have all your negatives paid. That alone should leave you feeling pretty proud. I wonder didn't any of them let you do a pay for delete?

Mon, 07/28/2008 - 14:08 Permalink

I think it is a shame that you have paid them all and in the end there is no positive result, they still stay on your report for the seven years, that is the same thing they would have done if you had not paid them.

I applaud you on getting them all taken care of, at least you can say that you did not fully walk away from the debt and not pay it.

Tue, 07/29/2008 - 00:47 Permalink

I am sure it took alot of work. Like I said i another post erb the credit world needs a complete make-over. Starting with the ticklers and how long a old paid debt can stay on as a negative. They are so worried about the credit world because of the effects it has on the economy and so forth. If they would revise some of these things they could help make the credit world a stronger and safer place.

Tue, 07/29/2008 - 12:45 Permalink

Yes, as soon as you pay off the debt, it should go out off the credit report because sometimes we not only pay the original debt, but also a large sum of money along with it as interest. But the system is such that it stays on the credit report for seven years affecting our credit score. The only way to get the listing out of the credit report is to make the creditor agree for a pay for deletion agreement.

Thu, 07/31/2008 - 10:39 Permalink

Yeah the original debt plus all the crazy fees on top of that, I agree it should come off your report or the length of time that it stays there should be shortened. Who makes these laws maybe we could advocate for this.

Thu, 07/31/2008 - 11:17 Permalink

That would be an idea. I can see leaving it on for a very short period of time but this 7 year thing is ridiculous. Many peoples lives changed drastically in a seven year period. Just because your a little down and out and having problems doesn't mean its forever. I know I look back at my credit record an d think "wow things were really bad back then". I say let it on there for a few months and then let the past be the past.

Thu, 07/31/2008 - 12:23 Permalink

There you go, you will have to get yourself a cupcake and have yourself a little private party huh, LOL. It is call for celebration, a lot off your shoulders huh.

Mon, 08/04/2008 - 22:45 Permalink

Maybe I will invite a bunch of people last minute and pretend the invitations got lost in the mail.

Tue, 08/05/2008 - 01:29 Permalink

Just celebrate yourself, lol, it is your own little victory, so buy yourself a cupcake and sing a little praise, LOL. I am sure a lot of people would not understand anyway.

Sun, 08/10/2008 - 13:07 Permalink

Probalty turn out to be a much better party that way. One thing about people these days is the UNDERSTANDING has gotten lost.

Mon, 08/11/2008 - 00:54 Permalink

Well, if they don't show up you can always have yourself one big pity party, LOL. I know that you are smiling when you are looking in the mirror these days, having this out of your way and off your shoulders.

Wed, 08/20/2008 - 02:05 Permalink

This much is true. I feel so much better mentally and physically since moving out here to the country and away from relatives. Before it was like having a monitoring system on you 24/7. Everytime my car would pull out of the driveway I could hear them saying "She leaving again? or where does she find to go all the time?" Evfen if I hadn't left for a week this is what I'd get. That or "Why didn't you tell me you were runnung into town. I needed some things. Guess I will have to go without." No Granny..put some gas in your car and do your own shopping. UGH!!!

Wed, 08/20/2008 - 18:37 Permalink

I hear you, it seems as if some people never have a dime to put in your tank but want you to run them all over the place.

Sun, 08/24/2008 - 17:36 Permalink

I hear you, it seems as if some people never have a dime to put in your tank but want you to run them all over the place.

Sun, 08/24/2008 - 17:36 Permalink

Sometimes they just assume that when they are family that you are obligated to help them out, this may be the case here with fireyone. did you take her a lot in the past? I guess it would get on my nerves too if they were watching my every move and then talking about how much I run, how do they know where you are going?

Mon, 08/25/2008 - 11:07 Permalink

No never really took her anywhere (god what a thought!!). Just when her car was down I would ask if she needed anything. It started where even after it was fixed I was given a grocery list weekly. What mostly annyed me is she wanted her stuff on a seperate slip so I would have to do 2 orders. Then She never gave me the money before hand...only a check when I brought her up the goods and reciept. I really didn't have the extra cash all the time to wait until I was in town again to cash the check and get the money back Frustrating.

Mon, 08/25/2008 - 12:43 Permalink

Does she have kids of her own that could be helping her out? What does she do now that you have moved, I would hope that one of her own have stepped in to help her out.

I am sure that she appreciated what you have done for her and I am sure that she misses you for other reasons too. I am sure that she wishes she would have put the few bucks in the gas tank and make your life a little easier.

glad to here that you are in a better place now, hope it continues to do well.

Mon, 08/25/2008 - 15:37 Permalink

They have stepped up to the plate and I am sure she misses me like a dog misses his flees. I am the absolute worst most horrid person in the world...according to hear...who says no good deed goes unpunished???

Tue, 08/26/2008 - 01:25 Permalink

Yes it is. I know people on SS in todays world do have their struggles. When someone is trying to help why would you shoot the hand that reaches out to help?

Tue, 08/26/2008 - 20:00 Permalink

I agree, some people are used to help always being there that they begin to expect it, instead of showing appreciation they actually get mad when it is not there. Sometimes a little reminder never hurts.

Mon, 09/01/2008 - 13:40 Permalink

As long as there isn't another answer or gripe. I uinderstand how difficult it is when you get older but there are more and more programs being put in place for the elderly. I think they should be apprecitive of that.

Tue, 09/02/2008 - 01:28 Permalink

Well the thing is they will not access any help as long as a family member is doing it for them. It is actually better for them to access the services because they have the opportunity to get out and socialize and interact with other people besides family and friends.

Tue, 09/02/2008 - 01:34 Permalink

Good point. I hate when they think that reveryone should do stuff for them. You have your really indepenant ones and then you have the others. One big mistake as people get older is cutting themselves off from the world. They need social interaction to help them see avenues that could help them.

Tue, 09/02/2008 - 01:40 Permalink

They really need to access what is in place for them because if they don't the government will take them away. You really have to keep your numbers up and show the need for the programs to be in place or they will not fund them. Besides these programs are there to assist those who are low income, so it should put a few bucks back into their budget to help pay for other things.

Tue, 09/02/2008 - 01:47 Permalink

You must work with these things alot. I see where they are coming from though. I think news program and other places could help keep the elderly informed of available help. Seems like anymore we are all low income. Can't save a nickel anymore.

Tue, 09/02/2008 - 01:50 Permalink

That is why it is especially important for people to use the programs that are in place to help them. It saves them money that can be put into their budget and use for something else.

Tue, 09/02/2008 - 01:53 Permalink

I wonder whoever started these programs? It is an excellent thing. I also like the tax return they get on prorperty tax. There is nothing worse than to see an elderly person lose their home because they can't fit a thousand dollars worth of taxes in to their SS benefits. Gonna have to go soon...first day of school is tomorrow. YYYEEESSS

Tue, 09/02/2008 - 01:56 Permalink

Our first day was last week, so now all my expenses start with all the school junk, pictures, books from the book club, PTA junk, oh lord help me survive, the child is only in kindergarten.

Tue, 09/02/2008 - 02:43 Permalink

People will probaly be racking up lots of credit card debt with the school year. What I can't believe is the price of school lunches. I pity the people that have two or three kids in school and can't qualify for reduced meals. Here in my school district they are like $1.85 for lunch and breakfast is $1.10. I have my daughter eat breakfast at home but then you have those teachers that when the child goes to her homeroom until breakfasst is over preaching to the child the importance of eating school breakfast. I mean she just left the house an hour ago with a full belly. Not only that I can pay for a box of cereal by the time I buy two of these breakfasts that will last all week.

Tue, 09/02/2008 - 22:01 Permalink

The teachers don't have to live on our budgets, I know what you mean, I wrote a check for ten days, it was for $24, so yeah it will be costly, $48 a month, seems like a lot, then they offer a cart of junk that they can purchase items from, junk food once they are done with real lunch. I don't think they should offer the junk, some kids probably eat it and not the real lunch.

Thu, 09/04/2008 - 00:16 Permalink

Oh did I have a problem last year with the junk cart. My daughter was purchasing pretzels and gatorade before even eating and it was costing a lot more. I finaly called the school and ended that. I can't see the purpose of having this cart. It only adds to the lunch bill.

Thu, 09/04/2008 - 00:31 Permalink

When I was in school they did not offer any of this extra junk.

Thu, 09/04/2008 - 01:40 Permalink

Me either. I don't think its even needed. They wonder why weight has become an issue and will even go as far as once a year doing all the students BMI's (body mass index). If you prach health then you ought to teach it too.

Thu, 09/04/2008 - 01:43 Permalink

gonna have to send you to mavis beacon for some typing lessons, lol.

Thu, 09/04/2008 - 03:24 Permalink

Thanks but what or who is mavis? I am always having a ton of typos. My hands get ahead of theirselves and then I see the mistake as I hit the send button...which is too late. And before you say it I am not much of a proof reader.

Thu, 09/04/2008 - 11:18 Permalink

mavis beacon is a typing tutor program that we use at work to help those in need of enhancing their typing or keyboarding skills. LOL

Thu, 09/04/2008 - 23:30 Permalink