Posted by michaela-ATL on October 13, 2005 at 13:02:10:
Jason,
I’m not a lawyer, so don’t take my words for gospel. I believe, that an uncollectable judgment is tax deductible. Check it out. Maybe that fact alone would be worth to continue?
Michaela
Got - Posted by Jason Fresno CA
Posted by Jason Fresno CA on October 13, 2005 at 11:58:38:
I bought two houses from a man three years ago on an OWC basis. The houses were grant deeded to me. I went to refinance them and found $18,000 of back payments were not made and another $12,000 in Mechanics Leins. I negotiated and payed off all leins and refinanced the properties.
I sued the seller. I got a “Default” - the Judge has asked the damages be itemized and for a copy of the Contract. The contract was hand written and was not admitted to the court. The seller already has $350,000 in judgements on him. I fired my attorney who has cost me $3,000 to get to this point.
The question: Should I go ahead and hire another attorney to get a Judgement? This has been a 3 year ordeal and this IS the short condensed version, but I do n ot want to do anything else that may be stupid. I am leaning twards dismissing the matter; any input or dangers someone in my shoes might face?
Thanks,
Jason in CA.
Re: Got - Posted by Brian (UT)
Posted by Brian (UT) on October 13, 2005 at 12:12:09:
Jason
You say you bought the properties on a owc basis so I’m assuming the seller carried back financing of some kind and you owe him money. So why not get a judgement and deduct it from what you owe him or is there more to the story?
Brian
Re: Got - Posted by Jason Fresno CA
Posted by Jason Fresno CA on October 13, 2005 at 12:25:36:
Thanks for the response Brian. Yes, I wanted to be brief as requested:
I bought them as OWC and the agreement was to immediatly refinance. I was not told by him that HE also bought the same properties on an OWC basis, and never made one payment!
When I innitially sued him, he put on retalitory Mechanics Leins on the properties, slandering title, and costing me thousands more in legal fight - but thats another issue.
Right now, today, I saw the judge who wants to know what I am going to do - I told him I need 30 days to find a new layer. My attorney admists to “an error in pleading,” furthermore has never sent me ANY account ballance - and when I told the judge this, he said that it is unconsionable for an attorney to A) Not send out an account balance for a 2 year casse, and B) Not disclose that the case was [pending] an explanation for damages.
Today, the judge let me go through my file for the first time. I have a default, but no judgement. So thats my issue, should I go forward or quit.
In the interest of disclousure, I was STUPID to buy the properties in the way I did, but this seller DID THE SAME fraud on many others. And no, the attorney said I can go for Civil damages, as I have OR I can go to the DA and file a criminal complaint, which I did not. Also, I have lost $35,000 on this matter more or less, and to HIRE yet another lawyer to get a judgement on someone who probably has $300,000 in judgements already and no way to pay---- I don’t know.
P.P.S.- THANKS FOR READING!!! And Thank God for the appreciation here in CA - so the $75,000 houses in Fresno that I bought are valued at $185,000 right now, so I did not go under because of this, but still the legal issue looms.
Re: Got - Posted by Brian (UT)
Posted by Brian (UT) on October 14, 2005 at 10:47:58:
Jason
I don’t understand why your attorney said judgement or criminal action. I don’t know of any law in California that prevents you from doing both, and personally both is what I would be doing.
You say he bought these properties the same way and didn’t make any payments so I assume he rented them out and milked the properties which is definitely against the law in California.
I saw Michaela’s response and suggest you check that out with your tax advisor. I’ve renewed judgements in California that appeared uncollectable and got my money sooner or later, even if it was from their estate, and I was satisfied knowing whenever their credit was run that judgement was still there haunting them.
Brian