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Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

Established Member

Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

My mortgage lender told me the only way to get my Experian up is to settle a $1200 judgement. I have read everywhere that this will not improve my score but she assures me it will. Anyone been in this situation where a paid judgement helped scores?

Message 1 of 6
5 REPLIES
Valued Member

Re: Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

Just paying the judgement will not improve your mortgage score at all. What you want to try to do is a PFD. Plenty of topics started regarding this. Just don't make the mistake of paying first and losing any leverage you have, good luck!
Message 2 of 6
Established Member

Re: Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

It won't help your score, but I'm pretty sure an open judgment is an automatic denial for a mortgage.

Message 3 of 6
Established Member

Re: Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

Not with our lender. You just have to show 3 months of a payment schedule with them
Message 4 of 6
Frequent Contributor

Re: Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

Sadly there are some missinformed reps out there........We had a buyer years back who was very interested in purchasing. He only needed a few more points to qualify. The lender told him to pay off his auto loan to bring the score up (this was NOT a DTI issue). As you might expect, when he paid it off, his score dropped (only installment loan).

 

Do your research, don't take a lenders advice about credit scoring as gospel. There is a difference between what they tell you is REQUIRED to take care of and what they suggest will increase your score.

 

 


You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing!
Message 5 of 6
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Frequent Contributor

Re: Mortgage Loan/ Paid Judgement. ANY ADVICE APPRECIATED

We require judgements to be paid off or you making payments to the judgement because they can take 1st lien of the property you're purchasing. It won't help your credit scores up and it may even lower it.

Mortgage Loan Officer in Greater Chicago area plus 47 states.
Message 6 of 6