Posted on: 24th Jun, 2011 02:45 pm
I also want to add that these two judgements were not reflected on my credit report. They were only discovered when my mortgage company pulled public records on me. I did not know the landscaping judgement was out there from 2005. I knew that I owed a debt to the feds, but I didn't know that there was a public record of it and I am current with it and it is not on my credit report.
Your lender would ask for proof that the judgement has been paid. And for the taxes, some lender will allow if you are on a payment plan. What has your loan officer told you? He should be the one who directs you. Ask him/her what the next step is if they can continue to approve your loan with the judgements.
My lender was working with the owner of the mortgage company today regarding this issue. I was not up front with them about this, as I didn't think to disclose it. I am not quite sure what they are going to do about it and I still haven't really explained to them that I am on payment arrangements regarding the federal debt. The landscape debt was paid in full years ago...right after I lost the case, I paid them their money.
Our guidelines allow if you are on a repayment. You want to be completely honest with the lender/loan officer. They want your business, but if they dont know the whole story, they cant just guess. If you think you might open up a can of worms, the Underwriter will find out sooner than later anyways...So you might as well come clean and disclose it all. Lenders use too many checks and balances/quality controls, to not find out things like alimony, child support, tax liens etc...Just give them a call and talk about it. If they cant do it, someone else might...Good luck