Does a judgement absolutely have to be paid prior to getting a mortgage? I am hearing 2 different stories from 2 different loan officers.
It really depends on underwriting, and maybe on the size of the judgement as well, but you will likely be asked to pay any open collection or judgements.
It's Midland and I just hate them lol. It's for $644, but was hoping to settle for less with the collection agency that currently has it. I just got a paid for deletion and a settlement on another item. This is my last debt. I guess I should just bite the bullet.
I've heard of some lenders accepting a payment plan but you would have to have payments already paid out to them. I think they require 10-12 on time payments under a payment plan before you can apply for a mortgage, but I'm not exactly sure though.
The other option is paying it off. I remember when paying my husband's judgment he was able to settle for less than the amount owed and it was considered satisfied. Would you be willing to do that?
If it's something you CAN pay, and are going to be looking for a mortgage soon, my suggestion is to bite the bullet and pay it to get it out from under you. One less stress to deal with in an already stressful situation. You will feel so much better afterwards (at least I did) :-)
If you are firm with midland and have a higher level CSR they will settle for more than less. Don't tell them why you want to pay it.......they offered 50% on mine I countered with 40% paid then over the phone. If you offer to pay while speaking with them they bite harder. It may take a few weeks to get your letter though.