Securing a Mortgage with an old judgement

[Boswd]

I have an old judgement that I'm currently still paying on.   It's no longer on my credit report.    It's now under $5,000    Credit report is clean with no negative items or late payments etc.     FICO score is 729.    My wife and I are currently looking to purchase our first home.   Her report is also clean with an 809 FICO  no negatives.     Looking to put down 10%     

We recently got pre approved  for $500,000 from Nationl Bank of Kansas City through Zillow.    Now I know it doesn't show up on my credit report but it will come up during the undrwritiing process on my Bank statements  since I make a $250 a month Payment to the State of New York       Haven't missed a payment on it ever.

Wife has the higher income  and has the higher score.  

Should I be worried?

Thanks in advance.

[coterotie]

The judgment attaches to the property.  So one way of structuring the purchase is to do it entirely in your wife's name if she qualifies.  The second way to do it would be to have both qualify but only she owns the property.  Both of you would be on the note and mortgage, the property would be titled in just her name.  Once you get the judgment paid off, then she does a quitclaim deed to you.  Easy peasy here in Alabama.  Also some states will issue a subordination letter so that they are behind the mortgage.  See if your state will.

Finally, you could always see if you can get a no interest CC and pay it with that.  Since it no longer damages your credit, the only negatives would be the dti and inquiry.

[BrianB_The_Loan_Professor]

Sect 8 of the loan app asks

Are there any outstanding judgments against you?

if you say no you are comitting fraud which is a felony if caught (not sure if they will prosecute)

or an autoimatic denial if you say yes

You need to take the funds down and pay the judgment off - 

It is the one things I have never seen a lender budge on

Good Luck

Brian

[Boswd]

Thanks for the responses,   I haven't no intention on trying to hide it.      thanks again.

[DallasLoanGuy]

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@Boswd wrote:

I have an old judgement that I'm currently still paying on.   It's no longer on my credit report.    the title company will find it anyway.....  does the lender know about it?

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[Boswd]

@Dallasloanguy    no not yet,  we only did the pre approval through Zillow .    But the amount was included in our montly  expenses.      Also If I take out a personal loan  to pay this off this close to entering the mortgage application process would this hurt as well?

[ShanetheMortgageMan]

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@Boswd wrote:

@DallasLoanGuy    no not yet,  we only did the pre approval through Zillow .    But the amount was included in our montly  expenses.      Also If I take out a personal loan  to pay this off this close to entering the mortgage application process would this hurt as well?

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If you take out a new personal loan your score may get hit a few points, but it's perfectly fine to use it to pay off the judgment.

[Boswd]

thanks its something we are exploring

[DallasLoanGuy]

i agree with shane

[basballguy]

I agree with DallasLoanGuy