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Established Member
jon31
Posts: 18
Registered: ‎03-29-2011

advice on denial

Hello,

 

We were suppose to close on Monday but in the middle of our loan process we found out we had a balance that we were unaware of from a garnisshment a few months prior of 116.00 We paid the 116 and got a release of judgment. Then in the final underwriting stage the underwriter requested the judgment had to be added to our credit report to rescore. The original creditor is already on their as a charge off and dinging us, so now they want to add the judgment too and see if my mid score will be good enough.I know it will ding me bad. It is 654 now. Does this sound right. They are saying it is er fha guidelines?

Valued Member
thrillege
Posts: 26
Registered: ‎06-11-2012

Re: advice on denial

Is this FHA?

Regular Contributor
laronda134
Posts: 143
Registered: ‎12-05-2007

Re: advice on denial

Find another lender. that will tank your score...

Established Member
jon31
Posts: 18
Registered: ‎03-29-2011

Re: advice on denial

yes FHA loan and the loan officer said it is the fha guidelines they are following, but when I looked it up nowhere does it state that, just says it has to be paid in full. In the meantime I have to move in with a relative and in the process of finding another lender. She said everything was fine when I gave her the file, now its a huge issue

New Contributor
PRC
Posts: 68
Registered: ‎04-16-2012

Re: advice on denial

I just closed on an FHA loan and this does not seem right. My DH had a judgment and we were required to pay it before we could get final approval (which we did).  However, he had 2 other judgements jointly with his ex that was not on his credit report and they didn't even look at those... How did they find out about the judgment if it was not on your credit report? Also, I would have them show it to me in writing because per FHA it only has to be paid not added to your report....


jon31 wrote:

yes FHA loan and the loan officer said it is the fha guidelines they are following, but when I looked it up nowhere does it state that, just says it has to be paid in full. In the meantime I have to move in with a relative and in the process of finding another lender. She said everything was fine when I gave her the file, now its a huge issue


 

Established Member
jon31
Posts: 18
Registered: ‎03-29-2011

Re: advice on denial

the judgment was a wage garnishment reflecting on my pay stubs and the original creditor is reporting as a charge off on the report. The lender I am working with said she has never heard of that before, so hoping all this works out in the end. I personally feel it is their company policy and they are blaming fha because she didn;t want to admit it was something she should have known about all along. Through the whole process her story never added up

New Contributor
PRC
Posts: 68
Registered: ‎04-16-2012

Re: advice on denial


jon31 wrote:

the judgment was a wage garnishment reflecting on my pay stubs and the original creditor is reporting as a charge off on the report. The lender I am working with said she has never heard of that before, so hoping all this works out in the end. I personally feel it is their company policy and they are blaming fha because she didn;t want to admit it was something she should have known about all along. Through the whole process her story never added up


That sounds crazy..You want me to put a judgment on my CR... so my score can go down????? I would move on to another lender.  They obviously do not know what they're talking about.

Regular Contributor
wanttomove
Posts: 181
Registered: ‎03-25-2011

Re: advice on denial

I don't know how your LO can 'add' a judgment to your credit report but...

You are required to disclose all judgments that you have against you, even if they are not on your credit report. Failure to do so is considered fraud. And even though they may not see it on your credit report it can show up when your attorney or the title company does a search on your name for any judgment's, liens, etc.

I'm curious to see if your LO can make this happen. Since it's being garnished from your wages technically you are making payments and I have heard of some LO's accepting unpaid judgments if you show 12 timely payments, but I don't know if that applies if it is being garnished. Good Luck.

New Contributor
PRC
Posts: 68
Registered: ‎04-16-2012

Re: advice on denial


wanttomove wrote:

I don't know how your LO can 'add' a judgment to your credit report but...

You are required to disclose all judgments that you have against you, even if they are not on your credit report. Failure to do so is considered fraud. And even though they may not see it on your credit report it can show up when your attorney or the title company does a search on your name for any judgment's, liens, etc.

I'm curious to see if your LO can make this happen. Since it's being garnished from your wages technically you are making payments and I have heard of some LO's accepting unpaid judgments if you show 12 timely payments, but I don't know if that applies if it is being garnished. Good Luck.


No fraud was committed for us.  My DH is not on the loan and the only reason we had to pay the one judgment is because the LO required us to just in case since he will be on the deed and we where going FHA.  We have sinced found out that we really did not have to pay it since he was not on the loan and per FHA cannot be on the title, but since they wanted us to and we had the money we did.  If we had gone conventional they would not have pulled his credit and it would not have mattered.  As for as the title company... they only pulled my info since I'm on the title and I am clean as a whistle.   If we were getting it in both of our names we would have had to pay all judgments even the ones he had with his ex...


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