Frequently Asked Questions DELMarVA Judgment Services

Q: What size judgments do you buy?

A: We specialize in recovering money judgments that range from $1,000.00* to $20,000.00. We may consider money judgments below $1,000.00 and above $20,000.00 on a case by case basis.

* Exception: Smaller judgment awards of less than $1,000.00 might now be valued at over $1,000.00 due to simple interest that has accrued over the years. For example, in the State of Maryland, simple interest on an original judgment award is 10%. Over a span of 5 years, a judgment award of $800.00 + 10% simple interest per year on the judgment award would have accrued to about $1,200.00.

Judgment Award + Simple Interest x Judgment Award x Years = Approx. Value**

$800.00 + ((10% x $800.00) x 5) = $1,200.00

** If with the benefit of simple interest and other applicable costs, the current value of a judgment approaches or exceeds $1000.00, we might consider a purchase.

Any prejudgment interest could affect the awarded amount, as would attorney fees.

Q: What type of judgments do you buy?

A: These would be for money that was not received for services rendered or for services not received. We continue to recover money from judgments resulting from:

Attorney Fees
Breach of Contracts
Bounced Checks
Dental and Medical Fees
Home Improvement / Construction
Landlord / Tenant
Professional Fees
Property Management
Personal loans
Unpaid Wages

We have no interest with judgments that do not include a money award.

Q: How are you able to locate a debtor and/or his/her assets?

A: We utilize our skip tracing tools and other resources, which are not available to the public.

Q: Is there a statute of limitations on executing my judgment?
A: Yes. Your state law sets a limit on how long a judgment is enforceable, called a Statute of Limitations. This period is usually from 5 to 20 years starting on the date your judgment was awarded. Some states provide a way of renewing your judgment for an additional period of time.

Q: Can I recover interest on my unpaid judgment?
A: Usually, yes. Most judgments include a provision for the payment of interest from the day it was awarded. The actual interest rate and calculation process varies from state to state. With interest, your judgment could be worth significantly more than the day it was awarded.

Q: Why shouldn't I use an attorney to enforce my judgment?
A: You can, if you are willing to put down a retainer and pay a fee of between $125 and $175 per hour, whether they ever recover anything or not. When we enforce the judgment, we pay you per our agreement.

Q: How about using a collection service?
A: A collection service may contact the deadbeat and irritate him or her to death! They may even place a black mark on his or her credit report. But, they rarely collect! And with the passage of the FDCPA (Fair Debt Collection Practices Act), the debtor has the right to just tell a third-party debt collector to cease all communications. We, as the legal assignee of record, are not affected by the FDCPA. We can investigate the debtor, locate his or her assets and seize them to enforce the judgment.

Q: Is there any guarantee that you will be successful?
A: No. Sometimes there are simply no assets to seize. But you can be sure that we will do our best, because if we are unable to enforce your judgment - we don't get paid! This gives us a serious incentive to succeed!!

Q: Must I pay any of the expenses incurred in enforcing my judgment?
A: No. In fact, we purchase the judgment from you, usually on a 'future pay' basis. At the time that we purchase your judgment, we've neither had the opportunity nor the legal right to investigate the judgment debtor. We can only do that after filing an 'Assignment of Judgment' with the courts. We then investigate the judgment debtor, and in accordance with the laws of your state, proceed with our enforcement efforts. Only after our investigation can we actually determine the value of the judgment. In most cases, the expenses incurred in enforcing the judgment are either added to the judgment and recovered from the judgment debtor, or they are deducted from the amount actually recovered. Either way, you have no upfront expense.

Q: How long before I will actually see results?
A: It all depends on the difficulty in locating the judgment debtor and in uncovering his assets. Some debtors are pretty adept at hiding their assets. They appear to live without any 'normal' means of support. We will try our best to get results in the first few weeks, but it could take months in a difficult case.

Q: I have a judgment awarded in one state against a debtor who resides in another state. Can you help?
A: In most cases, yes. Especially if the judgment debtor answered your complaint or made an appearance at your hearing. If the judgment debtor didn't appear, the judgment is called a 'default judgment' which is usually considered a weaker judgment. Each of us has the right to confront our accusers and to defend against any legal claims. So, if the debtor is able to show the court that he was not properly served, or served in the wrong capacity, he can file a motion asking the court to set aside the judgment. Overcoming this hurdle can be one of the most difficult in any enforcement effort. Especially when done across state lines.

Q: How does all this work?
A: First, we complete an agreement detailing the specifics of the purchase of your judgment. If acceptable, you will then assign the judgment to us making us the 'assignee of record'. Once we have filed the assignment documents with the court, we will have the legal right to investigate the judgment debtor and proceed with the process of enforcement. We will then make payment to you based on the funds recovered from the judgment debtor, per our agreement.

I'm sold! What is my next step?
Just complete a short online application. We will contact you by telephone and send the necessary documents for your signature. On return of the signed documents, we will immediately initiate enforcement of the judgment.

Q: What other kinds of debt do you buy?

A: Other debts include business notes and seller-financed mortgages. These are often referred to as "owner carry backs." When a business or property owner finances the sale to a buyer, he/she becomes the bank for the buyer. No bank qualifying is required. Points are not paid. Closings are quicker. No red tape is involved.

We also consider other types of debt, such as:

Accounts Receivables, Annuities, Contracts, Inheritances, Judgments and Liens, Life Settlements, Lottery Winnings, Mobile Homes, Non-performing Mortgages, Portfolios, Structured Settlements, Tax Certificates and Time Share Notes.

In a majority of these contracts, you must be receiving payments from a debt that someone owes you. In certain contracts, such as life settlements and viatical settlements, where you are making payments for a future benefit, we may consider providing a lump sum. Upon purchase, our funding sources will continue to make installment payments on your insurance contract.

To receive a quote on your debt, please complete our online worksheet or contact us directly.

Q: Does this mean you will buy my mortgage on my house or pay off my credit cards and student loans?

A: If you are making payments, we would not purchase your debt. However, if you need to refinance your home or other investment property, we can through our relationship with direct lenders work on solutions. If you have outstanding credit card or other consumer debt, ask us about our debt settlement program.

Q: What does this mean?

A: Let's use an example. Sammy and Suzy Sellers sold their house to Bob and Betty Byers, who couldn't get bank qualified for a loan. Bob and Betty had the down payment but their credit history didn't make them "bankable." Since Sammy and Suzy wanted to get rid of the house to relocate to sunny Florida, they offered the Byers "owner financing." Using this technique, the Sellers offered the Byers an attractive alternative.

The Sellers and the Byers created a contract on terms that they both agreed. Before ratifying the contract, the Sellers stipulated that the contract would be subject to their real estate attorney's review and able to be sold to a company, such as DELMarVA Judgment Services. If the purchase price and terms were agreeable between the Sellers and the Byers, the deal could proceed to closing.

The Byers liked the deal and understood the terms set by the Sellers to move into their new home. Each month, the Byers would send the Sellers an installment check to pay down their mortgage. This provided a nice steady cash flow to the Sellers. It also set up a consistent payment plan for the Byers to re-establish their credit.

However, after a couple of years, the Sellers discovered that they needed cash to repair Suzy's Saturn for much needed repairs. When the Sellers realized they could not get a loan against their seller carry back note, they contacted DELMarVA Judgment Services . After verifying the paperwork and performing their due diligence, DELMarVA Judgment Services agreed to purchase the right to receive future cash payments from the Seller's carry back note. The Sellers now had the funds to buy Suzy, her new Subaru.

Q: Why would I want to sell my note?

A: You might have a need to pay for an unforeseen expense. Examples could be a medical emergency, a home improvement project or tuition.

Q: How does this work?

A: To begin the evaluation process requires that you provide us information using the appropriate worksheet. After we review your information, we will contact you for a quote. If you agree to our price, we have you sign an agreement for us to proceed.

Q: What other information do you need?

1. For Real Estate Notes, we would need to see a copy of the Note, Mortgage (Deed of Trust) and the Closing Statement.

2. For Structured Settlements, we need to see a copy of the Settlement Agreement and the Annuity Policy.

3. For Business Notes, we need to see a copy of the Promissory Note, Security Agreement and the UCC-1s.

4. For all other contracts, we have listed requirements in the note submission form. If you do not find what you need, please contact us.

Q: How much can I get for my note?

A: Since each note is different, we are unable to tell you until we are able to evaluate your note information and associated documentation. As part of our evaluation, we review a payor's credit history, down payment, terms of the note and other details. Since such a review process requires examination, it is impossible to provide a quote during the initial phase.

Q: How soon can I expect a quote?

A. It depends on the type of note. Normally, it takes between 24 and 72 hours, sometimes longer.

Q: How soon can I expect to get my money?

A: Each contract is different. On the average, it takes thirty to forty-five days from the time you begin submitting paperwork to us following your signed agreement.

Q: Why does the process take this long?

A: The first step requires that we have all the documentation. On the average, this takes seven to ten working days, sometimes longer. The next step requires us to perform our due diligence to verify that the documentation is correct and accurate. This may require two to three weeks. Some contracts, by their nature, are more complicated than others and require careful legal examination. The final steps are to get you to sign off on the paperwork and deliver your funds.

Q: Is there any way to speed up the process?

A: If you have all of the original documents in your possession and you can get us copies via fax when we request them, you can save a week. Research requires the longest time. We recommend that you have all of your original documents before you call us. A transaction cannot be finalized without them.

Q: What if I cannot find my original paperwork?

A. You will need to contact the source that processed your contract. Copies are fine for review, but any unnecessary delay could affect the value of your note and getting funds to you.To close a transaction, we would need the original documents, so it is imperative that you have these ready when you call us.

Q: How much is this process going to cost me?

A: When we offer you a quote, we base it on the risk factors of your note minus our discount. We buy on discount to offset our risk of purchasing your note and to increase our yield.

Q: Are there investors who will buy my note at full face value without a discount?

A: Not likely. Investors buy notes if they can earn an attractive return. This is based on the terms of the note, type of note, a payor's credit and payment history and the Time Value of Money.

Q: I know I have everything in order, so what else could go wrong?

A: You might have the perfect note with good terms. However, if you made any of the seven common note mistakes, your note may have less value.

Q: What are those seven common note mistakes?

1. You didn't require a down payment on your mortgage note.

2. You didn't charge enough interest on your loan.

3. You aren't keeping accurate payment records.

4. You don't require your borrowers to carry insurance.

5. You assumed your note was a safe investment.

6. You didn't perform a credit check on the buyer.

7. You don't understand the Time Value of Money.

Q: What is the "Time Value of Money?"

A: The Time Value of Money is a concept that your money is worth more today than tomorrow. This is due to inflation. A dollar can buy more today than in the future. If you wait to receive your dollar in the future, your dollar will have less purchasing power.

Q: How do I know if I am getting the best quote?

A: Our goal is to find you the best quote based your immediate cash and long term needs. We do this by learning what works best for you, given your situation. Our underwriters are experienced investors with millions of dollars available.