https://ficoforums.myfico.com/t5/Mortgage-Loans/Is-it-possible-to-get-approved-for-a-mortgage-with-an-unpaid/m-p/771040#M71613 <P>you would almost certianly either have to have it paid off or have been making payments under a agreed upon (in writing) payment arrangement for at least a year.</P><P>&nbsp;</P><P>The concern from the bank comes 2 things...</P><P>&nbsp;</P><P>First and foremost is that if the lender finds out you are buying a home they will either seek a judegement or garnishment to force the issue since they know you would HAVE to pay thet prior toa new loan...Or they could just put a lien on the house after the fact.</P><P>&nbsp;</P><P>Second, they are going to see your unwillingness to satisfy that debt as a sign that in a pinch you will walk away from the loan they are about to give you.</P><P>&nbsp;</P><P>Basicly, banks are going to demand it paid.&nbsp; You might get lucky and squeeze through, but it is unlikely.&nbsp;</P><P>&nbsp;</P><P>You may also get an LO/UW telling you they can get it done without paying it off, but beware, often times this is not truthful.&nbsp; They like to polay on the side of best case scenario because they make no money if they do not at least try to get you approved.&nbsp; After you spend alot of time and money looking and offering on a home, then you will quite likely get hit with the "we tried, but this has to be paid" talk about a week before closing....</P><P>&nbsp;</P><P>One good note, is that they do not care how it is paid.&nbsp; That measn you can arrange a settlement.&nbsp;&nbsp;At 3 years old, they are likely to take substancially less than what the balance owed on it is.&nbsp; Probably somewhere around 50% (maybe less if&nbsp;the account&nbsp;has been sold a couple times).&nbsp; One&nbsp;key here is to pay it at closing.&nbsp; If you pay it right now, the acocunt will update your date of last acitivity which could lower your FICO a bit and coulse you to not qualify for the loan.</P><P>&nbsp;</P><P>&nbsp;</P> Thu, 04 Nov 2010 19:40:43 GMT Anonymous 2010-11-04T19:40:43Z https://ficoforums.myfico.com/t5/Mortgage-Loans/Is-it-possible-to-get-approved-for-a-mortgage-with-an-unpaid/m-p/770928#M71610 <P>Assuming scores are all above 640, and you meet all other requirements (income) and there are no other major negative items on CR, can you qualify for a mortgage with an unpaid auto repo? About $9,000 debt? And let's assume it's been about 3 years since the repo?</P><P>&nbsp;</P><P>Or will you have to pay it off in order to qualify?</P> Thu, 04 Nov 2010 18:00:11 GMT https://ficoforums.myfico.com/t5/Mortgage-Loans/Is-it-possible-to-get-approved-for-a-mortgage-with-an-unpaid/m-p/770928#M71610 Anonymous 2010-11-04T18:00:11Z https://ficoforums.myfico.com/t5/Mortgage-Loans/Is-it-possible-to-get-approved-for-a-mortgage-with-an-unpaid/m-p/771040#M71613 <P>you would almost certianly either have to have it paid off or have been making payments under a agreed upon (in writing) payment arrangement for at least a year.</P><P>&nbsp;</P><P>The concern from the bank comes 2 things...</P><P>&nbsp;</P><P>First and foremost is that if the lender finds out you are buying a home they will either seek a judegement or garnishment to force the issue since they know you would HAVE to pay thet prior toa new loan...Or they could just put a lien on the house after the fact.</P><P>&nbsp;</P><P>Second, they are going to see your unwillingness to satisfy that debt as a sign that in a pinch you will walk away from the loan they are about to give you.</P><P>&nbsp;</P><P>Basicly, banks are going to demand it paid.&nbsp; You might get lucky and squeeze through, but it is unlikely.&nbsp;</P><P>&nbsp;</P><P>You may also get an LO/UW telling you they can get it done without paying it off, but beware, often times this is not truthful.&nbsp; They like to polay on the side of best case scenario because they make no money if they do not at least try to get you approved.&nbsp; After you spend alot of time and money looking and offering on a home, then you will quite likely get hit with the "we tried, but this has to be paid" talk about a week before closing....</P><P>&nbsp;</P><P>One good note, is that they do not care how it is paid.&nbsp; That measn you can arrange a settlement.&nbsp;&nbsp;At 3 years old, they are likely to take substancially less than what the balance owed on it is.&nbsp; Probably somewhere around 50% (maybe less if&nbsp;the account&nbsp;has been sold a couple times).&nbsp; One&nbsp;key here is to pay it at closing.&nbsp; If you pay it right now, the acocunt will update your date of last acitivity which could lower your FICO a bit and coulse you to not qualify for the loan.</P><P>&nbsp;</P><P>&nbsp;</P> Thu, 04 Nov 2010 19:40:43 GMT https://ficoforums.myfico.com/t5/Mortgage-Loans/Is-it-possible-to-get-approved-for-a-mortgage-with-an-unpaid/m-p/771040#M71613 Anonymous 2010-11-04T19:40:43Z