DEFAULT JUDGMENT AND FORECLOSURE at IOB

What is DEFAULT JUDGMENT AND FORECLOSURE?

A “default judgment” is a judgment in favor of the foreclosing party (called the “bank” in this article) when the borrower doesn’t respond to a foreclosure lawsuit. The main danger of allowing a default judgment against you is that, once it happens, you’ll lose the opportunity to fight the judicial foreclosure.

Overview

A default judgment, when in regards to mortgage defaults, can end a foreclosure case, allowing the sale of the defendant’s house or property in a public auction. Typically, you will receive a 10 to 30 day notice of the lender’s (your bank/mortgage company) aim to file the foreclosure action with the court.

Frequently Asked Questions

What happens in case of default?

A default occurs when a borrower stops making the required payments on a debt. Defaults can occur on secured debt, such as a mortgage loan secured by a house, or unsecured debt such as credit cards or a student loan. Defaults expose borrowers to legal claims and may limit their future access to credit.

What does a default case mean?

A default judgment occurs when the defendant in a legal case fails to respond to a court summons or does not appear in court. If this occurs, a court may rule in favor of the plaintiff by default.

What is the effect of a default judgment?

Default judgments happen when you don’t respond to a lawsuit — often from a debt collector — and a judge resolves the case without hearing your side. In effect, you’re found guilty because you never entered a defense. Default judgments are sometimes called automatic judgments because of how fast they can happen.

What happens after entry of default?

Once a default is entered, the defendant is no longer able to file a response or otherwise participate in the case. When the default is entered, you may also ask the court to enter a judgment in your favor.

What is the difference between a default and a Judgement?

Although not always the case, in general a consumer is listed as defaulting before a credit provider applies for a judgment. Credit providers tend to apply for a judgments when a consumer has fallen behind on their payments and has failed to respond to reminder letters. Or they have not stuck to a payment arrangement.

What happens after a Judgement is entered against you?

Eventually, it goes to a collection agency. When all else fails, the matter is turned over to a lawyer. That lawyer files a lawsuit and gets a judgment against you for the specific purpose of getting you to make payments. The judgment becomes a matter of public record, and is indexed with the clerk of the court.

Is a default judgment a final judgment on the merits?

Final Judgment on the Merits: As indicated, a default judgment is a final judgment on the merits. Same Transactional Facts: “The marks and claims at issue in this proceeding were also at issue in the Civil Action.”

How do I not pay a Judgement?

You might be able to prevent collection of a judgment by negotiating with the creditor or claiming property as exempt. If a creditor sues you and gets a judgment, it has a whole host of collection methods available to get its money from you, including wage attachments, property levies, assignment orders, and more.

Can you appeal a default Judgement?

Where a defendant has default judgment entered against them they have no right of appeal, but they may apply to have the judgment set aside pursuant to CPR 13.

When can a judgment be set aside?

The court require a strong case to be established before it will set aside a judgment on the grounds of fraud. As a rule, a judgment can only be set aside, if at all, against those who procured it by fraud. See Tiv v. Wombo (1996) 9 NWLR (Pt.

Can a default be removed?

Once a default is recorded on your credit profile, you can’t have it removed before the six years are up (unless it’s an error). However, there are several things that can reduce its negative impact: Repayment. Try and pay off what you owe as soon as possible.

How do I remove a default Judgement from my credit report?

Ask the credit provider that issued the judgement against you to confirm in writing that you have paid them back. You should send this letter to the credit bureau and request that they remove the judgement.

How do you oppose a default Judgement?

If you do not think the default judgment was appropriately entered against you, you must file a motion with the court asking the judge to “set aside” (void or nullify) the judgment. If the judge grants your motion, the case starts back up again.

Can a Judgement affect your tax return?

How a creditor who has a judgment against you can go about collecting the debt from you depends on the laws of the state you live in. But when it comes to your tax refund, the IRS won’t allow a private creditor to intercept or garnish it.

How do you get a Judgement removed from your name?

If you pay the full amount owed before that time, the judgment will be removed from your credit report as soon as the credit bureau receives either proof of payment from the credit provider or a valid court order rescinding the judgment.