Advice needed on mortgage loan chances

[snis300]

I feel my situation is a little trickey. I would like to get a house early next year 2014. Here is the problem I have a judgment in 2003 that still has not been settled and I've tried  settling with the company but they will take no less than 80%. It is not showing on my credit profile. What plan of action should I take? Can i still go and try to get pre approved so I can start looking at houses and hopefully sometime this year be able to settle on the judgment for less and pay it off before next year?

Income:$40,000

downpayment $4000

Credit Card limit : $6,000 with Zero balance

Fico: exp 690 trans 700 equfax 695

[JM-AM]

Pre Approval is only good for a little while. It would be useless to you next year.

What is the judgement for?

How much is the judgement for?

Where did you obtain your scores from?

[snis300]

its for a credit card, the judgement is for 3k they won't accept anything less than 2,500. Those scores are from fico. I would like to see if I can get pre approved so I can start looking, if worst comes to worst I will settle for what they are asking, but I want to wait it out to see if they will come down from that price. What do you think?

[JM-AM]

If the scores are from FICO who did you get them from? Experian is not obtainable through MYFICO or even as a consumer purchasing direct from Experian.

Personally if I was in your situation and your scores are FICO scores. I would apply now and as long as you know up front they may require you to pay the judgement, you should be fine.

If they require you to pay the judgement, you can still settle the account as long as they agree to the account be settled for less then amount owed, with no further obligations.

[MovingForward_2012]

If the judgement is from 2003 isn't it almost outside the SOL? Also, since the judgement is for a credit card, I'm assuming you had a 120 day late and it was charged off but that is no longer showing on your credit report because it is over 7 years old? And lastly, is this a true judgement obtained through the courts? If yes, then if they haven't put it on your credit report by now, it is unlikely they will do it in the future.

I agree that you should apply for FHA now before the new rules go into effect. I say go FHA because you will probably get a slightly better interest rate going that route since your scores are still a tad bit low for a good rate through conventional.