Apply with judgment or wait?

[Anonymous]

So, we were getting ready to start the mortgage app process and I discovered that a judgment that was paid 6 years ago is still showing as open/pending.  I paid the full amount right after the judgment was filed.   Since I paid it, I thought that it was taken care of  but the collection agency never filed the satisfaction of judgment so it has just been sitting there as if it were still open.  The collection agency has finally filed a motion to get the judgment cleared but now I have to wait for the court.  I have two letters from the collection agency stating that I owe nothing and I have a copy of the filed motion.

Is it worth it to go ahead and apply for the mortgage now since I have those documents?  Or should I wiat until i have the signed motion?

[Anonymous]

They should be able to provide cancellation of judgment at least 30 days after it was settled; maybe you can get a copy of the cancellation and take it to your clerk of court. Not sure how that will help the reporting status if it is on credit report...just my 2 cents

[Anonymous]

No, the CA dropped the ball and never closed the file, so,it never got processed as settled. Our clerk of court won't accept anything addressed to me as proof that it is settled/paid (I tried to go that route). So I have to wait for the CA to do what they were supposed to do 6 years ago. I'm kicking myself for not realizing what the status of the judgment was for all these years. The CA has filed a motion with the court, but I have to,wait for it to be signed.

[StartingOver10]

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@Anonymous wrote:

No, the CA dropped the ball and never closed the file, so,it never got processed as settled. Our clerk of court won't accept anything addressed to me as proof that it is settled/paid (I tried to go that route). So I have to wait for the CA to do what they were supposed to do 6 years ago. I'm kicking myself for not realizing what the status of the judgment was for all these years. The CA has filed a motion with the court, but I have to,wait for it to be signed.

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I would wait unti the motion is signed off by the court and a satisfaction recorded.

The CA has already shown you their true colors. Don't risk it. Remember, CA's do this every day (sign off on Satisfactions and record them).  The fact that they skipped over your Satisfaction shows that they wait until the debtor catches them in a mistake before they correct it. It's been six years since you paid it. They know you probably didn't know you had to have a recorded Satisfaction IMO. I bet if you hadn't caught it and applied for the mortgage, they would have their hand out to have to pay again. JMO

[Anonymous]

Sigh...that is what I thought. I just want to get the ball rolling now, but I know it won't be good if financing gets held up just before closing because of this. And yes, the CA has shown its true colors. Even though they admit that this was paid 6 years ago it has taken way longer than it should have to get them to file this document.

[VALoanMaster]

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@Anonymous wrote:

So, we were getting ready to start the mortgage app process and I discovered that a judgment that was paid 6 years ago is still showing as open/pending.  I paid the full amount right after the judgment was filed.   Since I paid it, I thought that it was taken care of  but the collection agency never filed the satisfaction of judgment so it has just been sitting there as if it were still open.  The collection agency has finally filed a motion to get the judgment cleared but now I have to wait for the court.  I have two letters from the collection agency stating that I owe nothing and I have a copy of the filed motion.

Is it worth it to go ahead and apply for the mortgage now since I have those documents?  Or should I wiat until i have the signed motion?

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Hi Volwyo,

As long as you have the proof in hand that it's satisfied & the CA is working on getting it updated at the bureau level, I would go ahead & apply now.

Make sure you tell the loan officer up front and provide them with the proof you have and they should have no problem pre-approving you.

[Anonymous]

Thanks, VALoanMaster. I'm going to see if I can get more info from the court and talk to the loan officer. I can show that the CA says I owe nothing, but technically the judgement shows as open/pending and I didn't want to run into trouble with the mortgage app.