Posted on: 10th Aug, 2010 11:07 am
Hi,
I have read the other questions but I'm not clear on whether judgments have to be paid off in full before qualifying for a mortgage loan, or if lenders would be satisfied with a payment plan. We have two judgments that we've been making monthly payments on for about a year. The balance of both is almost $30k so paying them off is not an option in the near term. Can we still qualify if we can show that we are satisfying the repayment agreement?
I have read the other questions but I'm not clear on whether judgments have to be paid off in full before qualifying for a mortgage loan, or if lenders would be satisfied with a payment plan. We have two judgments that we've been making monthly payments on for about a year. The balance of both is almost $30k so paying them off is not an option in the near term. Can we still qualify if we can show that we are satisfying the repayment agreement?
Per FHA guidelines, exceptions can be made if you prove the agreement with the creditor and prove also that timely payments have been made. I believe a year should suffice.
