Posted on: 15th May, 2010 09:35 am
I applied for a fha mortgage loan with a bank and was told I was approved, my credit score is 660 which isnt great, but could be worse, I have paid off and paid down credit cards. payments have always been on time with these. had to write a letter however explaining a charge off on credit report, in 2006 that went to a collection company who also went on my report with the amount more than doubled in 2009. I had a dispute with the original creditor(creditcard) for unauthorized charges in 2004, and they claim a dispute was never filed and turned me to collection in 2006. now have 2 instances on my report for original creditor 6k and collection company 10k. today bank tells me 3rd has been added to my report now from atty for collection company and it includes a judgement. they tell me have to take care of this 1st with atty, bcause it jeopardizes the banks lean on my house, I dont know how I could not be aware of a judgement. I have already paid for termite inspection, appraisal, repairs to the house, and the banker advised me to begin homeowners ins for closing, so I did that too. I have invested $1000 so far in this and am not sure what I should do to fix the problems and still be approved. how do I take care of this to satisfy bank and be able to close. there is no way I can pay a lump sum to atty would have to make payments and worried debt to income ratio will be affected negatively and score may be brought down. I also am renting this house now and have a time limit with owner before I loose the house and she sells to someone else. I have invested a lot of money on improvementsto this house in the last 2 yrs, so would be losing great amt there too. Have 2 girls that can walk to school and would hate to uproot them after 2 years. What should I do? please need all the good advice I can get
If there is a judgment on your property, then you will have to clear it off first in order to get a loan. In most cases, the lenders will not be ready to give you a mortgage, if they find that a judgment has been mentioned in your credit report. You can dispute the judgments on your credit report in order to get them removed. However, unless you pay off the loan or remove them from your credit report, I don't think you would be able to qualify for a loan.
There are only three ways to have a judgment and get an FHA mortgage:
1. Get whoever filed filed it to dismiss it because it was filed in error. That does not seem likely.
2. Pay it off before closing. You say that is not possible.
3. Enter into a repayment plan with a monthly payment.. Always pay on time as required for 12 months or longer to show the lender the desire and the abilty to repay. That would only be good if you started now and applied for the morgage in 12 months.
While the circumstnces are unfortunate, I know of no other way to get the mortgage now.
1. Get whoever filed filed it to dismiss it because it was filed in error. That does not seem likely.
2. Pay it off before closing. You say that is not possible.
3. Enter into a repayment plan with a monthly payment.. Always pay on time as required for 12 months or longer to show the lender the desire and the abilty to repay. That would only be good if you started now and applied for the morgage in 12 months.
While the circumstnces are unfortunate, I know of no other way to get the mortgage now.
