What to do about a judgment

[kimfl]

You don't get it, I can't even get a mortgage right now because of this judgment, so therefore, I can't close on a home. This is the ONLY thing stopping me from getting a mortgage.

[guiness56]

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@annielorie wrote:

Guiness56 this cannot be used in any way to determine if  a lender will give you a loan. If you think the housing market were slow before>>> A lender can  for tax liens and judgements  require you to pay them prior to close so that no other entity can make claim to the title and put the lender as second fiddle. 

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Oh, it can and IS used all the time. 

A lender can require you to pay anything outstanding, including collections and COs, before they will finance a home.  They can also require it be paid at closing.

It depends on the lender and their requirements.

They don't always use this but, oh, they can.

[guiness56]

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@kimfl wrote:

That doesn't make sense, because if that were the case, an old bankruptcy could still be seen years after it has been satisfied. And if it stays on any report that you can't see (which isn't fair, but don't even get me started on that), under public records, why would I not have access to that info?

I am still confused as to what to do. I DO NOT have the money to pay it in full, if you read my OP. It would take me YEARS to pay this in full. The judgment is for almost $32,000, and I want to offer them $3200, paid $100 a month for 32 months, and I want to show the judgment as being satisfied, and this would include a legal agreement that they could NOT collect any further amount. Other than the judgment being filed, I have not heard one word from them in 6 years.

I think what most of you are telling me is, go ahead and try to negotiate a settlement, and that it won't hurt my credit score. I don't make a lot of money, and managing to get that much, even $3200, at one time, is next to impossible. I owe taxes every year because I work 2 jobs, so a tax refund is out of the question. I have to pay this off a little at a time. Maybe I should just let sleeping dogs lie.

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It doesn't make sense, I agree.  But they can get the information.  So can the consumer.

I know that doesn't help you but saying just let it fall off isn't either.

Have you tried to contact the attorney to try and settle and have it removed?

[annielorie]

Hogwash no dis intended. I was a realestate broker for 15 years this never happened. Otherwise what is the purpose of SOL.  The only thing a lender can require you to pay is legal judments taxliens and or back  child support.  Tell me one mortgage lender that does this and Ill show you a company that probably does very little business and is about to close its doors.  Otherwise anyone who owned a home would be required to pay debts even if they were not theirs. Not everyone comes to these boards and gets PFD. Many wait until it falls off because they dont know any better.  By the way thats why there are judgemnts. A debt needs to be proved in order to demand payment via other sources. Thats what the reporting act is partly about. Ill play what is the exact section you are referring to.Please post.  Dont take me wrong but your post could scare someone just perusing the boards.

[guiness56]

I only post true and verifiable things.

If you do not believe me, look it up in the FCRA 605 (b).

And if you have an issue with something I post, refer it to a mod if you believe I could scare someone.  Sometimes the truth is scary.

[annielorie]

I believe you are quite knowledgable. Thats not what im debating. I dont need a mod dont be silly. All Im trying to point out is that (whille I havent had the chance to read it yet) this is a scenario that is improbable at best.  Most just read thes forums and dont realize this is about a 98% chance of not happening. Im off to an appt. but when I get back Ill read and see your point. Didnt mean to offend you.

[Shogun]

I believe the stipulation is a loan over $150,000 or employment for a job salary of over $70,000 or so they can pull your entire CR.  This would be extremely rare but it could happen.  I wouldn't want to deal with a LO that was digging this deep nor have I heard of it happening very often.  I agree with not dragging anything up, especially while waiting on a mortgage.

PS..  no mod needed, you are both handling yourselves very well.  We allow arguments and debates in a well controlled manner.  Both guiness and annielorie are wonderful sources of information and I applaud their contributions to this site.

[guiness56]

 If you have an unpaid judgment, telling someone to let it age off may not be in the best interest of the person seeking the loan. 

Though it may not be used often, it is something a lender can use.  Trying to hide a judgment would not be good as it would show up.

I also am aware that many tend to think when something falls off your report it is gone.  It is not.  IMO, making them aware of the FCRA is doing them justice, not scaring them.

I just recently, today, read a post about a lender requiring all collections and COs be paid, at least by closing.  If you look on this forum you will find posts of others having things come up they thought were gone.

And I will not stop letting others know, for their benefit, about the FCRA.

[stormb28]

Ill chime in. I had a judgement for $26k and counting, interest still accrues over the years. I employed the "ignore" strategy hoping it would "go away". 4 months before the 7 year mark they made their move to renew the judgement. I consulted an attorney, offered a settlement, they declined. They knew they had 7 more years to collect, attach my bank accounts, or garnish my checks. My advice? Find a lawyer, BK may be your only option. You will not get a mortgage with this judgement looming.

[Shogun]

I totally agree guiness.  Plus there is the situation where they may ask you if you know of any outstanding debts.  You would then have to include this information in there anyway.