Posted on: 15th May, 2014 01:23 pm
we recently tried to qualify for a mortgage and was told due to a judgement against us (which we are already on a payment plan for) we couldn't qualify. the judgement is for an old BOA loan and we owe around 4,000 if we were to pay that off or do a settlement agreement for less would it show as paid on our credit and not look bad to the mortgage lenders? we were told that was the only thing holding us back and we want to get a house ASAP!
As per the credit bureaus any judgements will be removed from the credit report at the end of 7 years from the date it was entered. But it is allowed by many states that the creditor can renew the judgement even multiple times. However, the affect of the judgement will affect less in course of time. Still you have to make arrangements to pay off the judgement. New lenders will not entertain your application with an unpaid judgement. If they do, the old judgement can be modified to lien which will innitiate the foreclosure.
You cannot get a loan with a judgment - pay it off and show paid (or work out a pay for delete etc.) once that has been resolved it will no longer be an issue other than the impact it may have on your scores.
Good Luck
Brian Barnes
ENG Lending
National Lender
Good Luck
Brian Barnes
ENG Lending
National Lender
