Reply
Valued Member
Rvan1961
Posts: 47
Registered: ‎04-29-2011
0

Need Advice on Judgment and USDA/FHA Loan Underwriting

I have a question for you all about judgments in general. I realize that I have to rectify this judgment in order to buy a home. Do they often take an offer to PIF? Mine is more than 4 years old and  approx 6.5k and I have never heard a word from them at all. Would you really offer 10% like some have suggested? Can you offer, say 50% of what you owe and make payments for 12 months, then get your loan approved? Sorry, I am just looking to buy a home and have to get this judgment laid to rest for good. God knows if I had the cash, I would pay in Full just to get it done. Any help is appreciated


Starting Score: 622
Current Score: 650
Goal Score: 750


Take the FICO Fitness Challenge

Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

With USDA & FHA the judgment either needs to be paid, or on a payment plan for 12 months and then a lot of mortgage lenders will just include it into your debt to income ratio and not require it to be paid.

Valued Member
Rvan1961
Posts: 47
Registered: ‎04-29-2011
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

Thank you Shane, I appreciate the info. At this point, I don't really have 12 months to show a payment history (even if the plaintiff " Worldwide Asset Purchasing, LLC" allowed me to make payments, which is doubtful). I think I will hire an Atty to try to negotiate a payoff and have them vacate the judgment order completely. I'd like to do this myself, but since this plaintiff has never contacted me in 4 years, me contacting them may lead to garnishment.

 

Any Great Attorney in the Santa Barbara, San Luis Obispo County  Area that anyone could recommend would be appreciated. I have ARAG coverage in a pre-paid legal plan through work, just need the name of a aggressive atty.


Starting Score: 622
Current Score: 650
Goal Score: 750


Take the FICO Fitness Challenge

Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

Contributor
independentlady7
Posts: 117
Registered: ‎05-19-2011
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

[ Edited ]

I am in the same predicament Ryan with the same creditor. I have sent a 10% settlement offer and am waiting to see what their response is. I would like to get this taken care of prior to applying for the USDA loan. Is this the best avenue Shane or can I submit the app while trying to settle this debt?

 

One more question, does anyone know what bureau USDA pulls from? In Ny?

Thanks!

Starting Score May 2011:
617 TU (04)

Current Score 9/19/11:
677 TU (98)
670 Equifax
Goal Score: 700 by end of 2011

Valued Member
Rvan1961
Posts: 47
Registered: ‎04-29-2011
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

Keep us updated and I wish you the best of luck with both the settlement and getting your loan:smileyhappy: Let me know how they treat you.

 


Starting Score: 622
Current Score: 650
Goal Score: 750


Take the FICO Fitness Challenge

Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

It always looks better if you approach a mortgage lender with a paid judgment than an unpaid judgment.

 

If you are going with a mortgage lender, they'll pull all 3 bureaus.  If you are applying Directly with USDA, I am not certain if they pull just 1 or all 3, if they do pull one, I suspect it'd likely be Equifax.

Contributor
independentlady7
Posts: 117
Registered: ‎05-19-2011
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

Thank you Shane and Ryan.

 

It really has me extremely nervous about the documentation stating clearly that there has to be 12 months under the belt of the paid judgment. I really do not want to wait that long.

 

Starting Score May 2011:
617 TU (04)

Current Score 9/19/11:
677 TU (98)
670 Equifax
Goal Score: 700 by end of 2011

Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

You can always apply earlier for a pre-approval and see, worst that'll happen is you won't get the loan.  I'd wait until there has been at least 3 months of payments.

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Need Advice on Judgment and USDA/FHA Loan Underwriting

Hi, there.  I also had a judgment that my LO said had to be paid as a condition of the pre-approval.  It was for 1900 initially but after fines and fees I ended up paying 2500.   I had 13 months of ontime payments on that judgment, but ultimately had to borrow the money to pay it off as a condition of the loan.  Hopefully it was worth it (I still don't know until she pulls my credit again after the bank approves our offer).

 

Good Luck.

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

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}