This happens more often than one would guess. Servicer obtains a money judgment against a borrower who promptly moves to another state. The question then arises, what do I do to enforce my Indiana judgment in New York where the borrower now resides in comfort? (Substitute any states you want in the equation and most often the answer will be the same.)
Knowing readily and accurately what papers are needed will allow servicers to attack this problem quickly, efficiently and economically.
Of course the initial servicer’s inquiry might be – we foreclose mortgages; when would we get money judgments? Some circumstances answer the question:
These are but a few examples which make the point that servicers do get money judgments. And when that coincides with the borrower exiting the jurisdiction, the servicer wants to know what to do with the judgment in the other state – the place where the borrower moved. Here’s the answer, rather consistent throughout the nation because most states have adopted what is called the Uniform Enforcement of Judgments Act.
If the borrower appeared in or contested the action which gave rise to the money judgment, that judgment can be entered in the new state and then the usual judgment enforcement procedures follow. To perform the ministerial task of entering the judgment in the new state, the servicer needs:
This is really easy and servicers are now armed to move quickly to enter the judgment in a new state.
But, if the judgment was on default (the borrower did not appear or contest), then the judgment cannot simply be entered in the new state. Rather, an action on the judgment must be begun. This then becomes a matter of legal practice in the new state to be discussed with counsel there. There may be accelerated procedures available, but it is still a lawsuit and certainly more burdensome than merely entering the judgment.
Mr. Bergman, author of the four-volume treatise, Bergman on New York Mortgage Foreclosures, LexisNexis Matthew Bender (rev. 2017), is a partner with Berkman, Henoch, Peterson, Peddy & Fenchel, P.C. in Garden City, New York. He is also a member of the USFN, The American College of Real Estate Lawyers, The American College of Mortgage Attorneys, an adviser to the New York Times on foreclosure issues and writes a regular servicing column for the New York Law Journal. He is AV rated by Martindale-Hubbell, his biography appears in Who’s Who In American Law and he has been for years listed in Best Lawyers In America and New York Super Lawyers.