Re: Trying to get pre-approv
10-08-2012 02:53 PM
Does having a judgment automatically preclude you from getting a mortgage? I spoke to one broker, and she told me that no one would approve me, so I have an attorney friend who is going to try to work things out on this. All my bad debts are years old, at least 4 and most 5-6 years old. My credit scores are 584 from Equifax, 621 from TU, and 682 from Experien. The last I pulled myfico score it was 637, but I have had Experien correct an error on my report (it increased 43 points in one month because of this). I feel that right now, the ONLY thing stopping me from getting a mortgage is that judgment.
Yes, a judgment can keep you from getting a loan.
You want to have the judgment either vacated or satisfied before you even apply for a loan. In many jurisdictions if you buy property with an outstanding judgment the judgment can attach to the property and actually come in front of the mortgage. That happens instantly when you close so now you have an encumbered title. That's one of the reasons why lenders' won't loan to someone with an outstanding judgment.
So is your friend going to contest the judgment and have it vacated or is he going to negotiate the settlement/satisfaction for you?