Does loosing a court case effect your credit rating?

[Doctor Zoidburg]

I have a tennant who paid the rent late for four months, I took him to court and he lost the case. Does this effect his credit rating in the future? If he wants to buy a house and applies for a mortgage in the future does the banks or credit agencies check to see that he has had court cases against him or if he has lost non payement court cases?

 

[rafterman]

It would if you received a judgement and filed it with one of the credit bureaus.

 

[Doctor Zoidburg]

I hate this batard so much that I will try my best to pay him back for all the agravation he has cause me. ( Not to mention the cost and time )

 

[bankerboy80]

It would if you received a judgement and filed it with one of the credit bureaus.

You may even be able to sell the judgement to a collection agency. Once they take over it can be a difficult situation for your former tenant.

 

[Doctor Zoidburg]

The tenant paid late, but 20 - 25 days after the agreed day of the month. The juudgement was that he had to pay on the agreed date. There was no penalty to the tenant except for the court cost. It cost me money to serve notice on him. If he is late again, that is when the lease he will be kicked out.

 

[Aardvark154]

I have a tennant who paid the rent late for four months, I took him to court and he lost the case. Does this effect his credit rating in the future?

(The judgement was that he had to pay on the agreed date.)

Given the facts you provide Dr. Zoidburg, where I am no, a landlord-tenant case such as this would not affect his credit rating - after all he did pay albeit late and the court ruling was merely ‘in the future pay on time’. If, however, he had failed to pay several months rent, and you obtained a judgement against him for amount of the unpaid rent then you could (presumably in Ontario as well) report that judgement to the credit bureaus (however, you would be well advised to make sure that he had exhausted any appeals before doing so).

As usual you are well advised to check with a Lawyer in your area face to face before you take any action.

 

[HAMSTER INSPECTOR]

I have heard that if you apply for a mortgage that there is a search to see if there are any court cases pending or previous as well as if there are any liens or past judgements against you. While it may not prevent you from getting the mortgage it my increase the interest bracket you must pay on the mortgage or there may be much more stringent stipulations on the mortgage itself. I also remember that when you apply for a mortgage you must sign a statement that there are no liens, or judgements past or present against you. Then they do a search at your expense, if you lie then you are in deep shit. For the mortgage being applied for or any future mortgages because you will be branded a liar.

 

[Aardvark154]

I have heard that if you apply for a mortgage that there is a search to see if there are any court cases pending or previous as well as if there are any liens or past judgements against you.

Check where you are. However, I believe you will find that this means a monetary judgement. i.e. you owe "X" a certain amount of money. Not that you must remove the cedar trees you planted in your front yard contrary to a restrictive covenant.

Without looking up cases, a judgement saying pay your rent on time, seems to me closer to the later than the former.

Needless to say previous court action is a much broader net.