topic Re: Pay judgement before closing? in Mortgage Loans

Pay judgement before closing?

WannaHouse — Mon, 10 Nov 2008 22:31:35 GMT

Our mortgage broker told us to go ahead and pay off a judgement now. Will that hurt anything? All i can find is not to touch it until closing, but he said we need to pay it now.

Sound okay? The LAST thing we need right now is to fudge something up!!!

Re: Pay judgement before closing?

Anonymous — Mon, 10 Nov 2008 23:23:44 GMT

It is likely that any judgements will have to be paid off prior to or at close. That said, it is benerally considered unwise to pay off any accounts while in escrow as it can have a negative affect on your FICO and if they re-pull credit and the FICO has dropped some it may mess up your rate or approval. The best way is to ask for it to be paid at close. You bring that much money to close (in addition to any other closing monies needed) and the escrow company actuall pays it off for you so all parties are guaranteed that it is done.

The other reason that you don't necesssarily want anything to be paid is that it can be hard with some companies to get the written statement showing it is paid off in a reasonable timeframe. So it just works better to have the escrow agent pay it off.

I would discuss with your broker and see why it needs to be paid PRIOR to close or if he can accept payment through escrow.

Re: Pay judgement before closing?

DallasLoanGuy — Tue, 11 Nov 2008 00:57:01 GMT

you can have it paid at closing by the title company.

ask them why they cant do that. everybody else can.

Re: Pay judgement before closing?

BrianB_The_Loan_Professor — Tue, 11 Nov 2008 01:08:31 GMT

Don't risk fudging things up

Tell the broker you wont have the ability to pay until the close

Ask him why he wants you to pay it now? Explain your concern - they may know something we dont about your scenario that requires it? Unlikely but it could happen

Brian

Re: Pay judgement before closing?

WannaHouse — Tue, 11 Nov 2008 01:36:25 GMT

Okay...I got ahold of him right before I made supper and he said "you can't close with a judgement". Well, THAT I knew from my FICO gurus.

He did clarify that we just need to make sure it gets paid or no house. Hubby must have misunderstood when he talked to him.

Thanks all!