Posted on: 20th Mar, 2007 08:41 pm
We just applied for our first mortgage thinking that our credit was clear enough finally to get approval. I was contacted by the bank to submit proof that the $10348 judgement against my husband was paid off. We didn\'t even know that this judgement existed! We pulled our credit reports and saw that the judgement was granted in the state of KY in August 2002. We recognize the Plantiff: Triad Financial and are quite positive that it has to do with a vehicle that we had returned to them in 2001, due to a broken contract agreement on their behalf, while we were living in GA. It was filed in the county we resided in so no way to dispute it there. What do we do? We don\'t have 10 grand available to pay this thing off and didn\'t even know it existed until today. Is there any course of action that can be taken so that we can secure this mortgage loan and get this judgement off our credit report?
Hi Shellbie,
Welcome to the forums.
A judgment is considered to be a negative item on the credit report and usually stays on the report till it is paid off or satisfied.
The company should have informed you that a judgment has been issued against you. I don't think there is any other way to get out of the judgment except that you contact the company and pay it off.
Thanks,
Jerry.
Welcome to the forums.
A judgment is considered to be a negative item on the credit report and usually stays on the report till it is paid off or satisfied.
The company should have informed you that a judgment has been issued against you. I don't think there is any other way to get out of the judgment except that you contact the company and pay it off.
Thanks,
Jerry.
Is it possible to still secure a mortgage on our residence with this judgement in place? Do we need to pay it off in full before we can even consider the purchase?
We have lived in here for 3 years and are currently handling all the payments on the home, including the taxes and insurance. The current owner is a friend and would like to sell the home to us so that she is able to secure a mortgage on another home. Are we really stuck??
We have lived in here for 3 years and are currently handling all the payments on the home, including the taxes and insurance. The current owner is a friend and would like to sell the home to us so that she is able to secure a mortgage on another home. Are we really stuck??
Well shellbie, you may get a mortgage depending upon the lender you are approaching.. Most lenders may not be willing to provide loans and even if they do, they will charge you a higher rate of interest. So, it is better to pay off the judgment fully and then apply for the loan.
Hi Shellbie,
You're not really stuck. You can still get a loan. There are lenders offering loan to borrowers who have been in situations as you are in.
After you pay down the judgment, you can obtain a "Certificate of Satisfaction" from the judgment creditor so that lenders you approach will come to know that you have paid your dues. This may help you in securing a mortgage.
However, it is a fact that even if you have paid off the judgment, it stays on your report for 7 years as a negative mark.
Thanks,
James.
You're not really stuck. You can still get a loan. There are lenders offering loan to borrowers who have been in situations as you are in.
After you pay down the judgment, you can obtain a "Certificate of Satisfaction" from the judgment creditor so that lenders you approach will come to know that you have paid your dues. This may help you in securing a mortgage.
However, it is a fact that even if you have paid off the judgment, it stays on your report for 7 years as a negative mark.
Thanks,
James.
Hi Shellbie,
As long as the judgment is not filed as a lien on the title to the property, there will be no problem in getting the loan. You can check this out by doing a title search on your property through a title company.
If the judgment is filed as lien on title, you need to pay for it. And, you can even try to negotiate with the creditor for a lower payment on the judgment.
In general, mortgage lenders are not allowed to offer loans to individuals who have state or federal liens. But there are exceptions always.
I shall suggest that you contact some lenders in your area and show them your credit report. They will be the right persons to tell you if they at all can lend you.
Thanks,
Caron.
As long as the judgment is not filed as a lien on the title to the property, there will be no problem in getting the loan. You can check this out by doing a title search on your property through a title company.
If the judgment is filed as lien on title, you need to pay for it. And, you can even try to negotiate with the creditor for a lower payment on the judgment.
In general, mortgage lenders are not allowed to offer loans to individuals who have state or federal liens. But there are exceptions always.
I shall suggest that you contact some lenders in your area and show them your credit report. They will be the right persons to tell you if they at all can lend you.
Thanks,
Caron.
I looked into it Caron and there is no lien on any property. However I seem to have hit a brick wall in securing a mortgage loan, at least for a while.
The judgement in question is scheduled to be removed from his credit report July 2009. I am not in disagreement that we owe something to the plaintiff-just no where near that amount. After a call to the County Clerk in the other state I was told that they filed the judgement as though my husband still had possession of the vehicle, even though we had voluntarily relinquished it to the company and it was sold at auction. Was this legal? Seems to me that they are attempting to sell the same vehicle twice. The balance on the loan at the time of relinquishment was 9300, they sold the vehicle for 5000 at auction. Shouldn't that only leave 4300 as a collectible amount?
Our credit union wants the judgement fully satisfied in order to go ahead with the loan and CountryWide is requiring that we at least have a settlement agreement in place.
The question now is how to handle it. I am being told that disputing the judgement starts the clock all over again, that I will more than likely lose my argument against the amount and that the company can/will file in my present county and the judge can order what little we do own sold to satisfy the debt. Is any of this accurate?
Also, CountryWide is insistent that we have an open trade line of credit so that they have a second score to look at. Any experience at this? We have avoided credit cards and credit accounts for years in an effort to clean up the mess we were in financially only to be told that in order to secure a mortgage we have to have an account open. Letters of credit from in-house lenders do not seem to be enough in and of themselves.
I appreciate all the help I have gotten here-all of you truly rock! Now I just need to know my next course of action.
The judgement in question is scheduled to be removed from his credit report July 2009. I am not in disagreement that we owe something to the plaintiff-just no where near that amount. After a call to the County Clerk in the other state I was told that they filed the judgement as though my husband still had possession of the vehicle, even though we had voluntarily relinquished it to the company and it was sold at auction. Was this legal? Seems to me that they are attempting to sell the same vehicle twice. The balance on the loan at the time of relinquishment was 9300, they sold the vehicle for 5000 at auction. Shouldn't that only leave 4300 as a collectible amount?
Our credit union wants the judgement fully satisfied in order to go ahead with the loan and CountryWide is requiring that we at least have a settlement agreement in place.
The question now is how to handle it. I am being told that disputing the judgement starts the clock all over again, that I will more than likely lose my argument against the amount and that the company can/will file in my present county and the judge can order what little we do own sold to satisfy the debt. Is any of this accurate?
Also, CountryWide is insistent that we have an open trade line of credit so that they have a second score to look at. Any experience at this? We have avoided credit cards and credit accounts for years in an effort to clean up the mess we were in financially only to be told that in order to secure a mortgage we have to have an account open. Letters of credit from in-house lenders do not seem to be enough in and of themselves.
I appreciate all the help I have gotten here-all of you truly rock! Now I just need to know my next course of action.
Hi Shellbie,
It's good that you do not have to deal with the judgment for a number of years - 0 to 2 years can still be managed.
I don't think the selling of the vehicle is legal - I mean once it has been sold at the auction. So, how can your husband possess it? I agree with you. I think the $4300 should have been the collectible amount.
If you wait till the judgment is disputed, it may take time. It actually depends upon the credit bureau you will be approaching. And, yes the company may again file in the present county and you may lose some of your assets to pay it off.
Your credit union is doing the right thing. It perhaps wants you to clean your credit a bit and then go along with the mortgage. But then you will have to wait for 2 years. And, I guess you don't want to do so.
On the other hand, Countrywide has the option of the settlement agreement, that is, they want you to sign the settlement with the creditor and give them a copy of the agreement. That's ok but I have doubts regarding the open trade line of credit. As it is there is a judgment and then if you again manage a debt along with the mortgage, it may become a bit tough for you.
You can go along with Countrywide but it's too early to decide if you haven't collected information on the rates and fees that they are going to charge you for the mortgage.
You can request them if they can do without the line of credit. Or else, you may look out for other lenders who will not require you to follow such a condition.
Hope this will help you...
God bless you.
Samantha
It's good that you do not have to deal with the judgment for a number of years - 0 to 2 years can still be managed.
I don't think the selling of the vehicle is legal - I mean once it has been sold at the auction. So, how can your husband possess it? I agree with you. I think the $4300 should have been the collectible amount.
If you wait till the judgment is disputed, it may take time. It actually depends upon the credit bureau you will be approaching. And, yes the company may again file in the present county and you may lose some of your assets to pay it off.
Your credit union is doing the right thing. It perhaps wants you to clean your credit a bit and then go along with the mortgage. But then you will have to wait for 2 years. And, I guess you don't want to do so.
On the other hand, Countrywide has the option of the settlement agreement, that is, they want you to sign the settlement with the creditor and give them a copy of the agreement. That's ok but I have doubts regarding the open trade line of credit. As it is there is a judgment and then if you again manage a debt along with the mortgage, it may become a bit tough for you.
You can go along with Countrywide but it's too early to decide if you haven't collected information on the rates and fees that they are going to charge you for the mortgage.
You can request them if they can do without the line of credit. Or else, you may look out for other lenders who will not require you to follow such a condition.
Hope this will help you...
God bless you.
Samantha
