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In underwriting paying judgment

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billpayer
Member

In underwriting paying judgment

Hello all I am in underwriting for the purchase of my first home (yea!!) and I am also paying off a judgment that was entered against me in 2004.  The relief I feel about finally paying this off is beyond belief. Through the years I requested that this creditor accept payment over time but it was only when I said that I would pay in full that they were willing to deal with me.   I will be overnighting the payment to the attorney and I requested that he fax me a letter saying that this judgment is satisfied and that the appropriate paperwork will be filed with the clerks office within days. Hopefully\Prayerfully he will comply. It seems that I write this attorney letters and fax them but he wants to reply by snailmail and telephone messages are never returned. Anyway this monkey will be off my back very soon and I will be moving into my new home next month.  Do you think that my score will improve as well? Any gain will probably be offset by the inclusion of a mortgage on my report but one could hope. Thank you forums for all of your help in resolving my credit issues.

Message 1 of 8
7 REPLIES 7
Booner72
Senior Contributor

Re: In underwriting paying judgment

When I paid my judgment I got the "satisfaction of judgment" paperwork right away from the CA.  Then I disputed the account w/ all three and then they updated it to satisfied.  I really don't think you will get any score improvement for paying the judgment.  Paid or unpaid, a judgment is a big bad thing on your credit reports.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 8
billpayer
Member

Re: In underwriting paying judgment

Update-after much consideration I drove the payment to the attorney's office today and he actually did send me a letter confirming that he recieved satisfaction of the judgment and will be sending me the official papers as soon as he can present them to the county clerks office.  Also today I recieved a conditional mortgage committment -conditional on payment of judgment (done) and appraisal (praying) So all is moving along nicely.

Message 3 of 8
mamahearts
Frequent Contributor

Re: In underwriting paying judgment

That's awesome! Good luck!

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 4 of 8
billpayer
Member

Re: In underwriting paying judgment

okay new update. I sent to the processor the letter from the attorney and all seems well there. However the appraisal came back 4900 less than the purchase price so of course we now have to lower the cost of the house cause (1) I ain't got an extra $4900 laying around and (2) why would I pay more than the bank values the house for. The sellers agent says that the seller may not be amenable to lowering the price however the seller's attorney says the price should be lowered. Anyway waiting to hear from either the agent or attorney. The way I figure it based upon the cost comparision appraisal it can only get worse if the sellers walk away and kill the deal (ie more houses will sell for lower prices) btw the appraisal price is 1k more than my original offer (so there sellers). Just kidding still in prayer I want this house.

Message 5 of 8
Walt_K
Senior Contributor

Re: In underwriting paying judgment


@billpayer wrote:

okay new update. I sent to the processor the letter from the attorney and all seems well there. However the appraisal came back 4900 less than the purchase price so of course we now have to lower the cost of the house cause (1) I ain't got an extra $4900 laying around and (2) why would I pay more than the bank values the house for. The sellers agent says that the seller may not be amenable to lowering the price however the seller's attorney says the price should be lowered. Anyway waiting to hear from either the agent or attorney. The way I figure it based upon the cost comparision appraisal it can only get worse if the sellers walk away and kill the deal (ie more houses will sell for lower prices) btw the appraisal price is 1k more than my original offer (so there sellers). Just kidding still in prayer I want this house.


Just FYI, I don't think it's uncommon for an appraisal to come in below market value for a home. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Message 6 of 8
doublespaces
Frequent Contributor

Re: In underwriting paying judgment

I was very worried about my home coming in low and they basically take this stance IMO: They look at the price that you've agreed to with the seller, they look at comparables and every other little factor and they try to make the determination if the price you are asking is within reasonable estimated value and if it is, they will just appraise the home at that price point. I think this is why so many homes are coming back on the dollar appraised. If there are factors that make the home more valuable then obviously they will attribute that and you'll have instant equity. Then again if the home seems to be falling behind the comps in terms of the factors appraised, then you'll come in low... IMO, they don't sit there and have a formula for turning square footage into dollars and cents, they moreso just look at all the factors and determine if the price its being sold for  is reasonable. If not, they start knocking dollars off or adding them up to a similarly priced and sold home. With the market falling walt is right, about 1 in 3 homes are coming back low according to my LO.

Starting: EQ: 490 TU: ??? EX: ???
Current: EQ: 717 TU: 757 EX: 736 (lender)
Goal: 800+
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Message 7 of 8
Booner72
Senior Contributor

Re: In underwriting paying judgment

The problem right now with appraisals is that the banks sometimes own the appraisal management companies and the appraisers are making 1/2 what they did back in the day.  They also are sometimes required to travel 50+ miles to do the appraisal and don't know anything about the area.  They have to bring in comps that shouldn't be comps bc that is all they have to work with.  The appraisers are trying to do their best in this housebuying market like everyone else - but there are factors that never were factors before *(Such as lack of comparables recently sold etc).  

 

Our appraiser did factor in every square foot of our house and the other houses, and fluctuated the square footage price based on the appraiser's view of quality of the build, updates, etc.   Our appraiser had to appraise our 1992 house with houses built in 2005 - we came out okay because this house is much better quality than those new slapsticks, and the appraiser carefully lined all of that out.  It was very detailed, it wasn't just a "general guess that this sounds okay."  Meticulous could be the word used to describe the report.

 

If you feel that your house should be worth more or less than what the appraiser said it was, find out more info about the report - you are entitled to a copy of the appraisal report.  You can buy a new appraisal but you might end up getting the exact same appraiser since no one can pick an appraiser anymore.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 8 of 8
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