Will these judgements stop me from getting a mortgage? Please Help!

[Anonymous]

I discovered this AMAZING site on June 29, 2015 and at that time my credit scores were terrible….EX 597, EQ 602 and TU 603. I had 5 medical collections, 1 judgement (medical bill from 2009) and an old MCI charge-off for $331 listed on each report. Thanks to the wealth of information on this site I was able to get all of the medical collections removed from my CRs and the charge-off dropped off at the 7 year mark. The judgement was paid back in 2010 once I learned about the default judgment and it is currently listed on my CRs but due to fall off in a few months. I have a copy of the warrant to satisfy judgement that was filed with the NJ courts in 2010.

My scores have improved significantly within the past 6 months…as of today EX 697, EQ 703 and TU 700.

I am now preparing for homeownership in 2016 but I have a few questions regarding judgements and collections during the mortgage process.

Back in 2007 a default judgement for another medical bill denied by my health insurance was entered against me in the amount of $786. The courts then levied my bank account for $673, leaving a balance of $113. I actually thought they took the full amount but just recently learned that they did not. I want to pay the balance of $113 today. Can you please let me know if I pay the remaining balance of this judgment will the new activity on the account then provide the creditor an opportunity to re-list this as a new judgement or collection on my credit reports? It fell off my reports last year and I don’t want it back on. Also, when I start the mortgage application process next month will the banks deny my application due to these judgements although they are paid? What should I do regarding these judgements? It’s a very long story as to why I had so many unpaid medical bills although I have always had health insurance.

[StartingOver10]

Pay off the judgement.  Make sure you get a recorded Satisfaction of Judgment from each of the judgement holders.  They can not re-enter the judgement on your credit report just because you paid it off.  The lender will want those judgements paid anyway.  Make sure you keep your proof of payment and the recorded Satisfaxtions in case the u/w asks to see it.

Congratulations on your score!  I see all of your hard work has really paid off

The u/w may ask about the occurrence of the judgements (maybe not), but you have two great things in your favor: 1) they are medical judgements and 2) they are paid. 

[Anonymous]

Does anyone know how long it usually takes to get a judgement off courts public records site once satisfied?

[StartingOver10]

As far as I know the judgment isn't removed at all when it is paid. The Satisfaction shows that it is paid so it becomes a non-issue. If your jurisdiction allows a paid judgement to be removed - you would have to go through the process to "vacate a judgement".  Look up your state's statutes to see if your jurisdiction is one that allows a paid judgement to be vacated.

[Anonymous]

So do you know if it stays public record forever if paid?(i live in nys if that helps)

[StartingOver10]

As far as I know, the records are permanent, but here is a link to start your research for NY State statutes and public records: https://www.nycourts.gov/courts/1jd/supctmanh/county_clerk_records.shtml

[Anonymous]

My judgement never did update as satisfied until I actually took a look at my credit report and then sent a letter to the 3 CB's telling them it was. YMV, though. As for your other questions, Judgements stay on your report for 7 years. Since you're lucky enough to live in NYC I think it's only 5 years. I don't think they ever actually go away though. They just stop reporting  on your credit report. Regardless, you'll need that judgement PIF before you get that mortgage so when you call them up and agree to pay the remaining debt  tell them you want a letter stating that you've satisfied the judgement and then send that to the Credit Beuraus.  Are you sure you didn't just settle for less than owed? It's possible you did sattisfy and it has yet to be updated.

Anyway,  It took a few weeks for all mine to say satisfied. FTR I saw no change in score until the judgement fell off one of my reports. 

[Anonymous]

Thanks for your responses. I mailed a certified bank check to the court officer via certified mail today for the remaining balance. 

His assistant said they would notify the plaintiff's attorney upon receipt of the check and ask them to file the warrant of satisfaction. 

I will definitely follow up with them to make sure that it's filed. I don't want this to hinder me from getting a mortgage. 

I want to get all of these issues settled and resolved so that I can get approved for a mortgage. 

[StartingOver10]

Exacty the right thing to do ^^^.

Keep all your records just in case the lender needs a copy.  You will definately want a copy of that Satisfaction after it is recorded. 

[socialknitter]

I too had 3 judgements from 2009 and 2010 that I have been working on in the past 6 months to prepare for a mortgage.  My boyfriend's mother is a lawyer so she helped with 2 and I negotiated the last one from 2010.  She actually did a title search and discovered a third judgement that did not even report to the credit bureaus which had to be paid before a mortgage because they do research public records for these situations.

All three have now been satisfied and I sent the satisfaction to the credit bureaus which have either marked it as satisfied or deleted them entirely.  Transunion and Experian have deleted them earlier than I have ever seen before.  They were not set to fall off until 2016 and 2017.  Now is the time to try and get them off in my opinion, maybe its the season but I feel Transunion and Experian are in a giving mood.  lol  I didn't even send in the official satisfaction to Transunion and they removed it.  

As far as banks go they want them all paid which others here have said.  After that they really don't care it seems.  My best friend is my loan officer and she wasn't concerned at all once they were paid.

I learned all of this from this forum and got my credit scores up 100 points in 6 months with hard work and 2 years of solid, excellent credit.  I am now preapproved for a mortgage and looking for a house to buy.