05-17-2017 11:31 AM
Wow so aggravated, a 6400 judgement is now 13.682.30 after years of interest, was hoping to offer a lower settlement but doubt that will work, probably out of options but i want a mortgage and the lender told me just get in an agreement for 3 months, this is from 2012
05-17-2017 11:35 AM
Come July it may just fall off. I will keep my fingers crossed for you. I know how frustrating it can be. Give this a read! http://blog.myfico.com/upcoming-data-purge-fico-scores/
05-17-2017 01:13 PM - edited 05-17-2017 02:18 PM
The creditor has their own options after they have secured a judgment.
They have in their pocket a court finding that the debt is legit, and a court order that you pay.
If the consumer has not paid, they can return to court and seek a writ from the judgment court that orders you to pay in a specific manner, such as by attaching assets or garnishing your pay. That can be done at any time while the judgment remains enforceable. Judgments are usually enforceable for an initial period of 10 years, and can easily be extended. Is the judgment currently still enforceable?
Additionally, a judgment is not required to be excluded under FCRA 605(a) if it remains unpaid and enforceable.
The exclusion period is the LATER of 7 years from the date of entry, or until the period of enforceability of the judgment has expired.
While the CRA may choose to exclude based only on reaching 7 years from date of entry of the judgment, it is not required to do so.
Additionally, even if excluded from your credit report, it remains in the public record. Mortgage underwriting commonly includes their own public records search for exisiting judgments, so they will not need credit reporting to make them aware of the judgment.
I would consider offering them a settlement for the original amount of the debt.
However, that may cause a review that could lead to their seeking a writ for recovery of the entire debt.
05-19-2017 12:34 PM
The reason songburd18 wrote what she wrote about the judgement falling-off on July 1st, has to with a new credit reporting rule that say that CRA's an no-longer use their public-records snoopers to snoop for a judgment, put it on the credit report, and then just leave it there until 7 years pass. Starting July 1st, 2017; CRA's will be obligated to update the CR every 90 days, or remove the judgement. It is not clear (to me) if this means that it has to fall-off if the difference between right now and the "date updated" is 90 days or more, with the possibility of reinsertion after verification by a snooper, or if it means that the removal must be permanent. I would suspect that it is the former, in which case, the judgment could reappear after the CRA's snoopers were able to verify. If a CRA is lazy, or is unwilling to pay their 3rd-party snoopers to pull the judgement records from the court to verify, there could be a (potentially long) lapse durying which the judgment will not appea on your credit report. Note that this removal would apply not only for "normal" run-of-the-mill credit reports uses for things like credit cards, but also for "deep inspection" reports that go back more than 7 years. The idea behind the new regulation is to force the CRA's to maintain acurrate data.
That said, one might imagine a situation where:
Transunion likes to keep unverified credit report information in a kind of "runt" CR that is secondary to your real CR. These runt "CR"'s generally do not show their information wihen your real CR is pulled. Recently, before the 2017-07-01 trigger-date, they started verifying judgments in those runt CR's; and, if the information was found to be accurate, merging the runt CR's info with the real CR's info. Some consumers will be suprised to discovered that they have judgements on their CR's that only showed up just before 2017-07-01, having been suppressed for years. You can contact Transunion directly and ask them if you have one of these runt CR's. If they ask you if you want to merge your "runt" CR to your real CR so that you can dispute information in the runt CR, DO NOT DO IT UNTIL YOU UNDERSTAND THE IMPLICATIONS OF DOING THAT.
05-19-2017 03:22 PM
A mortgage lendor does not rely solely upon a consumer's credit report during the underwriting process.
They will conduct their own public records search.
If you have a judgment, regardless of whether it is showing in your credit report or has been excluded based on the new National Consumer Assistance Plan review being conducted by the CRAs (for presence of a full name, address, and either an SSN or date of birth), it will likely still be known to the mortgage lendor.
I would not count on any exclusion of judgments by the CRAs based on lack of a name, address, and either SSN or DOB as providing a way of avoiding consideration of a judgment in a mortgage underwriting process.
05-19-2017 03:49 PM
also, the mortgage application will ask " Do you have any outstanding judgments ? "
If you answer, you will commit fraud.
Offer low ball settlement. Others are right, the bank/title company will find this in a heartbeat.
05-19-2017 04:25 PM
You can get into an agreement with them for probably as little as $400 a month. Make an offer to pay $400 a month for 36 months and they will likely give you a letter showing an agreed payment plan that you can give your mortgage LO.
An open judgment to that amount will likely block any mortgage lender from providing a loan because your home will have a judgment lien on it in 10 seconds flat. There's a company in my city that basically scans homeowners against judgements and sells that info to people who have judgements so they can quickly file liens against the property.
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