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Judgement - Mortgage Question - Texas

Established Contributor

Judgement - Mortgage Question - Texas

I currently own my home outright.  Wanting to relocate and upgrade in the next year.  I had in my past a judgement from a junk debt agency that rolled off my credit files 2 years ago.  I'm thinking a credit pull for a mortgage will still show the judgement?  If so do I have any way to remedy without approaching the current collector that still has the debt... they send a bill every year.  The whole situation sucks and I'm kinda stubborn about paying them anything.

 

PM me if you like.  I don't get on myFico too often any longer.  

Thanks

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 1 of 6
5 REPLIES
Valued Contributor

Re: Judgement - Mortgage Question - Texas

I prefer to answer publicly so other people can get some benefit out of it.

 

If you own your house and sell it for cash, approaching a mortgage company with a 60% or 70% down payment will get you approved even with a judgment.

 

A judgment alone on an otherwise well aged and perfect credit report can still get you a 760 FICO score.  So the judgment is no excuse for getting denied a loan.  If it isn't on your reports, at worst the bank may tell you to pay it, if they find it.

Message 2 of 6
Established Contributor

Re: Judgement - Mortgage Question - Texas

Thanks. The plan is buy a newly built home with large down payment & mortgage, then sell this home.  Pay off new mortgage with proceeds. 

Scores currently in 760-770 range but will improve as I pay off all balances before we try this.

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 3 of 6
Valued Contributor

Re: Judgement - Mortgage Question - Texas

Sounds like a plan.  Is the judgment amount high or is it something you could pay off if required to by a mortgage lender?

Message 4 of 6
Established Contributor

Re: Judgement - Mortgage Question - Texas

10K

 

Started with 1600.00 Providian charge-off many years ago.  I'm resisting.

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 5 of 6
Established Contributor

Re: Judgement - Mortgage Question - Texas


BarryNTexas wrote:

I currently own my home outright.  Wanting to relocate and upgrade in the next year.  I had in my past a judgement from a junk debt agency that rolled off my credit files 2 years ago.  I'm thinking a credit pull for a mortgage will still show the judgement?  If so do I have any way to remedy without approaching the current collector that still has the debt... they send a bill every year.  The whole situation sucks and I'm kinda stubborn about paying them anything.

 

PM me if you like.  I don't get on myFico too often any longer.  

Thanks


Hi BarryNTexas,

It is highly probable that the creditor has a lien against title of your current home which means you cannot sell it without the judgment being paid off. 

Now let's say the creditor did not file a lien & the judgment only shows up on your credit, the only loan you'll be able to get without paying it off is a non qm loan or what amounts to a hard money loan. That means you'll pay a higher rate. 

 

National Mortgage Banker.
VA Mortgage Expert.
Message 6 of 6