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|Knowledgeable landlords try to avoid the need for a judgment in the
first place by properly screening and selecting tenants and utilization
of good management procedures. However, sometimes, in spite of doing
everything right, one must deal with a judgment.
Landlords should obtain judgments even when they think that the debtor-tenant has no income or assets because judgments can be collected for many years and the debtor may be in a substantially better financial condition several years later. Judgments can also be collected in a state other than the state where the judgment was obtained.
If the judgment finds its way onto the ex-tenantís credit record, it will likely have to be paid off when the debtor seeks financing, for example, to purchase a home. The chance of the judgment appearing on the debtorís credit report is greatly enhanced by making sure that the debtorís SSN appears on the judgment document. Interest will continue to accrue until the judgment is paid, so the judgment can actually turn out to be an excellent investment.
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