Unsatisfied Judgment NOT on Credit Report

[hiitsjenna]

Hi,

So I have a quick question - my husband and I are currently in the underwriting stage of our first VA mortgage loan with a local bank. We have been preapproved however, I am beginning to get worried. My credit report lists a collection account with LVNV Funding which was for a credit card past the SOL. It was initially listed on all three and in dispute status; I contacted all three credit bureaus to remove this remark and the account has completely dropped off both TU and EX but stayed on EQ with the dispute remark removed.

Recently, I found a boatload of documents pertaining to this account at my parents house (which I was looking for in case my loan officer requested anything - so far, she has told me NOT to pay this account). In these documents was a copy of a "Default Judgement" for this account. Now, I was young back then and freely admit my mistakes and my complete disregard for my responsibilities however, I did not remember anything about a judgement until now. 

My issue is that this judgement is NOT showing in the Public Records section of my credit report - it shows as a collection account, which my loan officer and I have already discussed. I searched the Massachusetts Appellate Court records online (I'm not even sure if this is the correct place to search) and nothing came up for me under my maiden name.

What should I do? Should I inform my loan officer of this or should I wait it out since it is not showing on my credit report? Will this suddenly appear and cause my loan to be denied? The amount is for $4,000 which I could potentially pay but not until after closing as all of our savings are currently tied up in escrow. I have worked for years to fix my credit and this would be the last negative from my past and I would love to have it taken care of and not have to worry but I don't want to do anything that may affect our loan right now.

Any help/input would be greatly appreciated as I'm starting to lose sleep!

[JM-AM]

Discussing a collection out of SOL is different from a Judgement.

You must disclose the Judgement. While you can not find any information on the Judgement, does not mean it will not be found. Failing to disclose information, will most likely give you a denial and possible Mortgage Fraud.

Paying the Judgement after purchase house can have the chance of causing you more issues.

1. You buy house

2. You didnt disclose Judgement

3. You are approved

4. You close on your home

5. Bank funds your loan

6. You try to settle your judgment

7. Company who obtained Judgement decides to put a lien on your home instead

8. Bank now wants their money in full for purchase of house

9. You do not have the money to pay mortgage in full

10. You become homeless and charged with Mortgage Fraud...

Mortgage Fraud is considered a very serious offense