Cheryl Knowlton: Hi, everybody. Cheryl Knowlton, Dynamite Productions, here with my favorite sidekick, Clay Johnson with Castle and Cooke Mortgage. All right, so let’s talk about two of our least favorite things to talk about, charge offs and judgments.
Clay Johnson: Yes, those are the couple of things that you really have to deal with in a real estate transaction. And there’s some good reason for that. A charge off can turn into judgment, a judgment can affect title and lien your title. So that’s the last thing as a mortgage lender or a lender period that you want to have happened is to have that, a lien on there.
Clay Johnson: So how do you deal with that and what’s the best way? So people say in credit repair, how am I going to do that? Well, that’s what a really good credit repair company will do. And you’ve got to be careful. There are some crazy ones out there, but we-
Cheryl Knowlton: But you have some that you love.
Clay Johnson: Have a couple that we’ve had great experiences with. What I love about it is they’re going to hold your hand, they’ll get you on a three-way call, they’ll call the person and they’ll help you settle that out, get it taken care of and negotiate it sometimes for just a great price. So it will say settled, but that’s a lot better than having a judgment or just a charge off that’s not dealt with.
Cheryl Knowlton: Or an open collection.
Clay Johnson: Yes.
Cheryl Knowlton: That’s just sitting out there marinading. Yeah, we don’t want that.
Clay Johnson: Right. Medical collections, there’s some understanding and some leniency, like we talked about before, but for just a regular collection, yeah, you’ve got to handle that. Because that can be escalated. We have some great ways of dealing with that internally, but sometimes we’re like, you know what, just like we’re mortgage professionals, you’re a real estate speaking professional. We need to turn this over to the credit professional and have them handle this the right way.
Cheryl Knowlton: Absolutely. And don’t be afraid of that process, because this is going to ultimately get you exactly where you want to be. So if you don’t want to call Clay or John, text them or put a message down below in this video and someone will reach out to you and help you hold your hand and walk you through that process.
Clay Johnson: You bet.
Cheryl Knowlton: Yay. See you next time.
Clay Johnson: Goodbye.