Conditional Mortgage Approval - Help

[Anonymous]

First, I would like to thank everyone for all the help I have received on the forums. So last Friday, my LO told me my FHA loan was approved with conditions. All are really simple such as updated bank statements and pay stubs.

However, the one issue that seems to be a thorn in my side was 2 judgements from 2012 and 2014 that were not showing as satisfied/released. Keep in mind, I paid them in 2012 and 2014. A few weeks ago, I went to the original CA and barely managed to talk them into sending the satisfaction of Judgement to the court but they did it. I have submitted copies of the satisfaction along with account statements from the CA that the original account was paid and when.

So the processors have asked me to send proof of the source the funds from the account these were paid from. Seems folks are having a hard time understanding that the CA just didn't do their jobs years ago. I just don't know how to paint a clear picture of this for the lender? LO mentioned doing a credit supplement but I want to make sure I am doing everything I can. One CA is willing to write a letter and the other is not. Advice on how to clear this up?

[NC_Mtg_Loaner]

Most lenders require one to show the source of satisfying a judgement if it's reporting in the manner you describe.  

Do you no longer have any evidence of the source of payment?  Sure it was a long time ago, but if you did a debit or withdrawal from an old checking/savings account you'll be required to submit a copy of that months' statement showing those funds--definitely a pain in the backside but that is the clarity and transparency of lending today.

[Anonymous]

I did payments for the one in 2012 which I did pay out of my checking account. They cover about 6 months of statements for the lender to go through. I also paid the 2014 one in one lump sum out of my checking account as well. I have all the statements to prove I paid. I actually already printed them! The totals do not match the judgement amounts due to court fees and interest. Will that matter?

[Anonymous]

---

@Anonymous wrote:
I did payments for the one in 2012 which I did pay out of my checking account. They cover about 6 months of statements for the lender to go through. I also paid the 2014 one in one lump sum out of my checking account as well. I have all the statements to prove I paid. I actually already printed them! The totals do not match the judgement amounts due to court fees and interest. Will that matter?

---

No, it won't matter, and you can also request your MLO to write an explanation letter to the bank for this or for any other last-minute issue that may show up