Posted on: 21st Jun, 2010 01:59 pm
I have a judgement and want to pursue an FHA loan. The lender wants me to pay the judgement off and I'm ok with that. I need to be 'gifted' the $, but they want the 'gifter' to write a gift letter and submit their banking information for a month. Can i cancel all activity, pay the judgement anyway I want then resubmit for the loan with the 'release' that shows the judgement is paid without more questions?
It's very hard to "unring" a bell; if you are staying with the same lender, the questions won't go away. If you payoff the judgement and then apply somewhere else, your credit score will probably take a hit and you won't qualify anymore. Paying a judgement can damage your credit score, this is why they, I assume, are having you pay it through closing. My suggestion would be to stick with what you have and comply with what they are asking. Gifts must be sourced and that includes bank statements and a gift letter along with showing they have the ability to make the gift.