Where to begin....I have a judgment on my CR from an unpaid Discover account. There is a lien on my home for it. I'm trying to figure out what my next step is to achieve my goals which are:
-Sell current home
-Use money from sale to pay off judgment
-Transfer land into my name from stepmother's (father passed away)
-Get prequalified for a construction loan (FICO score 645...not great). My credit history is very good other than this judgment.
-Sign a contract to purchase new modular home before the 2011 PA Sprinkler System law goes into effect (this is where I feel under the gun). One builder told us because we would have a well, the cost would be $20K to install this mandated sprinkler!
What do I do first? My head is spinning. I feel under a great deal of pressure after learning about this sprinkler system! If I wait until 2011 to get under contract, that means an extra $114/mo for 30 years to pay for a sprinkler. That is going to lower our approved purchase price. The builder told us as long as we get "under contract" in 2010, that is if I can get a mortgage in the first place, it doesn't matter about the timeframe of selling our home. They can wait 6 months, etc.
I'd like to get the land into my name because I was told that allows it to grow equity. I'm afraid to do that because of a lien put on that as well. What exactly happens if there is a lien? Would they come in and immediately take my land??
I'd like to pay off the judgment first but I don't have the $$.
Can you tell I REALLY don't want to pay that sprinkler fee!
Last desperate option...see if my husband can get approved for credit enough to pay off judgment right away and then do the rest. He also has $1000 available credit to use. The total debt is over $5K so not even sure if this is an option. Discover is not very negotiable. They were willing to settle for around 85% in the past but my cash option fell through.
