Waiting for a Year After Paying a Judgment to Get a Mortgage

[gettinitright1]

Hello,

I am trying to find out if most lenders or any lenders at all require that a person wait 1/2 year to 1 year to get a mortgage after a judgment has been satisfied?

I heard that some lenders/investor can require a mortgage borrower to wait for 1/2 year to 1 year after the judgment reports as satisfied. The judgment was for a medical collection that has been sastisfied. I never heard of this so when the lender said it is a probability I just wanted to check with the myfico community. Is this a common practice or should I begin looking for a new lender? I have not officially started a loan application yet.

The logic is not adding up to me because people have talked about paying the judgment prior to closing? Do you know if I would need to wait since I didn't already apply for the preapproval?

Thanks in advance for your help.

[AllThingsRPossible]

i need this answer also!

[FSFdoppleganger]

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@gettinitright1 wrote:

Hello,

I am trying to find out if most lenders or any lenders at all require that a person wait 1/2 year to 1 year to get a mortgage after a judgment has been satisfied?

I heard that some lenders/investor can require a mortgage borrower to wait for 1/2 year to 1 year after the judgment reports as satisfied. The judgment was for a medical collection that has been sastisfied. I never heard of this so when the lender said it is a probability I just wanted to check with the myfico community. Is this a common practice or should I begin looking for a new lender? I have not officially started a loan application yet.

The logic is not adding up to me because people have talked about paying the judgment prior to closing? Do you know if I would need to wait since I didn't already apply for the preapproval?

Thanks in advance for your help.

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Let's call the cavalry...Brian, Dallas, Shane...Some help over here please...

[DallasLoanGuy]

i have never seen that in any guidelines i have read.....

maybe some banks have their own guideline overlay on this subject.

i wouldn't need you to wait

[gettinitright1]

Hello,

Thank you for answering it, I know you are seasoned and know your stuff. I have read your post on many subjects. I even tried to google it and nothing came up. I am going through a broker and thought the process was supposed to be a little more lenient not in guidelines, but in willingness to loan. I paid off the judgment just recently for the sole purpose of being able to get a mortgage. I haven't had any late payments in the past two to three years and both of our scores meet the 640 minimum requirement.

I am hoping that when we finally apply we are not turned down due to this judgment.

I was also told that we need to have letters of explanations for medical collections. I have three accouts - two that I know are not mines and when I disputed the CB never provided me with the verification liked I asked so I have no intention to pay them.

The other one I dispute the amount so I don't kno what to say in an intention letter because the lender has advised that we need to explain why we didn't pay it. I didn't pay it because insurance would have taken care of it had it been filed timely. I have no proof because it was not submitted to insurance apparently and then I get a bill one day. I told the CA to submit to insurance but they never did -they wanted me to pay the full amount.  How do I get an underwriter to understand this? The loan officer said that it would be better to be able to say it is paid to show that we really are trying to take care of business. I thought our recent good history would demonstrate this.

Any good suggestions for explaining this without me appearing to be the unresponsible bad guy?

[ShanetheMortgageMan]

Medical collections almost never have to be paid, and rarely need to be explained. 

For the one that is worrying you, the CA is never going to submit an amount owed to them to the insurance company.  That is the hospitals or your job to do.  The CA just wants to get paid, they aren't going to research anything for you other than perhaps to provide you the proof that the debt is owed.  Just state that the bill wasn't submitted to the insurance on time, otherwise your insurance would have covered it.