Judgement Question regarding Mortgage

[sharpie]

I had a summons which I called and made payment arrangements on.  They immediately removed from my CR an old, satisfied judgement, and removed all reporting on the item the summons referred to.  This will be paid off in 2 months. 

I received in the mail (to sign) a "Stipulation for Conditional Dismissal and Contingent Order for Reinstatement of Judgement".  Among other things, it states "That in anticipation that the Defendant shall make timely payments in accordance with the above agreement, this matter shall be conditionally dismissed."

The question I have is this:  I have another judgement that never showed up on my CR.  There is no history of this account at all, other than with the court.  I understand that I cannot get a mortgage with an unpaid judgement.  This judgement, however, is for a very large sum of money that will take me 5-7 years to pay off. 

I have been told by a lender that I could probably qualify for FHA or USDA if I have a payment arrangement in place and have paid for 12 months.  However, I need to move in 3 and a half months.  I would greatly prefer to buy a house at that time, rather than continue renting.  It would be much less expensive.

If I am able to set up a payment arrangement with the original Plaintiff, requesting that they do a conditional dismissal of the judgement, would that then be reported as a judgement to the mortgage lender, or just an account?  I do realize it will affect my DTI. 

I currently have no debt other than this, and monthly items such as phone bill, etc.  No car payments or credit card balances.  I do not know my credit score as it is irrelevant at this point until I know about the judgement.

Thanks in advance for any and all advice.

[BrianB_The_Loan_Professor]

conditional dismissal wouldnt cut it they would have to dismiss and put you on payment plan for it to work

I assume when you say conditional dismissal that they would dismiss upon payment in full?

if I mis understand and we are talking the same as far as how to go about it then yes that should work

[sharpie]

I am not exactly sure what I mean, to be honest. 

The other creditor dismissed the judgement with the court, removed everything from CR, simply upon me making payment arrangements.  If I miss a payment, the whole thing goes back to square one, and has interest added.  It is not dismissed upon payment in full.  It is dismissed with the anticipation that it will be paid in full.

The other judgement, is a LOT more money.    I just wonder if they would do the same thing, and if they do, will it still count as an unpaid judgement..   It has never reported to my CR, and they do not really expect to get the money, but I would like to pay them.  It shows up only upon a search of the specific court where the judgement was issued.

[Anonymous]

it would have to be either paid in full, or have payment arrangements that have been in effect for 12 months.    When going through title, old judgements against you will show up (whether on CR or not).  Also, you have to sign disclosure statements that ask if you have had or currently have any liens or judgements and if the enswer is they will require them to be explained.

[ShanetheMortgageMan]

From what you've described, the judgment would be dismissed upon establishing a payment plan (not upon completion), then you should be able to move forward on the loan but you are correct that the payments will be factored into the DTI and you should be prepared with a letter of explanation to the underwriter on why you are paying that debt.