Negotiating Multiple Judgments Against Multiple Properties!

[Ibrahim Hughes]

I have 3 properties owned by an Estate and under contract. They’re in bad shape so they would all have to be sold ‘As-Is’ to an Investor for cash. I would put their values at about $255k ($40k for the single fam.; $90k for one of the 4 families and $125k for the other).

Encumbrances: Single family is free and clear. The $90k four family has a $25k first mortgage on it. The $125k four fam has a $99k tax lien on it).

The problem is that there are also some judgments owned by the State of NJ totaling $184k. Fortunately they’re in last position to the mortgage and tax lien and are willing to negotiate a settlement. However, I don’t know how much they’re willing to discount.

My questions are:
Where would you start in terms of an offer? I’m thinking $50k.

I’m assuming that I will also need to be able to negotiate partial releases of the judgments since I likely won’t be able to find someone who is going to purchase all 3 properties? If so how does that work? How do I apply what amount of the judgments to certain properties? I’m trying to wholesale these and having trouble trying to figure out the judgment issue.

I’ve negotiated a lot of judgments and other liens but the multiple judgment against 1 owner with multiple properties (in NJ, docketed judgments attach to a debtor’s assets) has me a bit baffled. Or am I making this too difficult?

Thanks in advance for your advice.
Ib