Confession of Judgment (COJ)

Written authorization of a loan agreement by the borrower giving the lender a judgment against the borrower in the event there is a default. A Confession of Judgment (COJ) clause or document (many times notarized) allows the creditor (lender) on a default event, to appear in court and deliver the Notarized COJ to the judge and request a default judgment against the borrower. You see this many times in MCA and other “Hard Money” loans.