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Judgement - Mortgage Question - Texas

Established Contributor

Judgement - Mortgage Question - Texas

I currently own my home outright.  Wanting to relocate and upgrade in the next year.  I had in my past a judgement from a junk debt agency that rolled off my credit files 2 years ago.  I'm thinking a credit pull for a mortgage will still show the judgement?  If so do I have any way to remedy without approaching the current collector that still has the debt... they send a bill every year.  The whole situation sucks and I'm kinda stubborn about paying them anything.

 

PM me if you like.  I don't get on myFico too often any longer.  

Thanks

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EX/759 EQ/762 TU/770 GOAL: Break 800
Message 1 of 14
13 REPLIES
Senior Contributor

Re: Judgement - Mortgage Question - Texas

I prefer to answer publicly so other people can get some benefit out of it.

 

If you own your house and sell it for cash, approaching a mortgage company with a 60% or 70% down payment will get you approved even with a judgment.

 

A judgment alone on an otherwise well aged and perfect credit report can still get you a 760 FICO score.  So the judgment is no excuse for getting denied a loan.  If it isn't on your reports, at worst the bank may tell you to pay it, if they find it.

Message 2 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas

Thanks. The plan is buy a newly built home with large down payment & mortgage, then sell this home.  Pay off new mortgage with proceeds. 

Scores currently in 760-770 range but will improve as I pay off all balances before we try this.

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 3 of 14
Highlighted
Senior Contributor

Re: Judgement - Mortgage Question - Texas

Sounds like a plan.  Is the judgment amount high or is it something you could pay off if required to by a mortgage lender?

Message 4 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas

10K

 

Started with 1600.00 Providian charge-off many years ago.  I'm resisting.

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 5 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas


BarryNTexas wrote:

I currently own my home outright.  Wanting to relocate and upgrade in the next year.  I had in my past a judgement from a junk debt agency that rolled off my credit files 2 years ago.  I'm thinking a credit pull for a mortgage will still show the judgement?  If so do I have any way to remedy without approaching the current collector that still has the debt... they send a bill every year.  The whole situation sucks and I'm kinda stubborn about paying them anything.

 

PM me if you like.  I don't get on myFico too often any longer.  

Thanks


Hi BarryNTexas,

It is highly probable that the creditor has a lien against title of your current home which means you cannot sell it without the judgment being paid off. 

Now let's say the creditor did not file a lien & the judgment only shows up on your credit, the only loan you'll be able to get without paying it off is a non qm loan or what amounts to a hard money loan. That means you'll pay a higher rate. 

 

National Mortgage Banker.
VA Mortgage Expert.
Message 6 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas

I own my current home outright.  Clear deed. No lien.

 

Judgement SOL ended 2 years ago and they didn't renew.  Fell off credit history as well.  Still visible in court records.

 

Would like to fine mortgage lender that will finance me in spite of the junk debt company's claim.

 

Thanks, BNT

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 7 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas

Hi BarryNTexas,

What type of mortgage are you looking at, FHA, VA or conventional & is it for a refi or purchase?
National Mortgage Banker.
VA Mortgage Expert.
Message 8 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas


@VALoanMasterwrote:
Hi BarryNTexas,

What type of mortgage are you looking at, FHA, VA or conventional & is it for a refi or purchase?

 

 

New purchase end of this year to upgrade home.  I will roll my current homes sell dollars into the mortgage once it's sold.  My current home was bought via homeowner finance and was never reported to my files.  I'd like to have a home purchase in my history before I retire in a few years.  The new home will be paid off in 5 years or less.  So type of mortgage is not important but having avoided paying the junk debt scoundrels is front of my mind.  Do you have a particular suggestion to accomplish my above goal? 

DC Prem 20K | DC Elite 20K | PenFed Visa 25K | NFCU Sig Visa 25K | NFCU Flagship 25K | AMEX Delta 25K & SPG 15K
RBFCU MC 20K | Barclay's RMC 11.5K & Ring 22K | Chase United 15K | Chase Hyatt 8K | Citi AA 15K | Citi DC 10K
Discover it® 10.7K | WalMart MC 10K | JCPenney MC 9K | Home Depot $9K
EX/759 EQ/762 TU/770 GOAL: Break 800
Message 9 of 14
Established Contributor

Re: Judgement - Mortgage Question - Texas


@BarryNTexaswrote:

@VALoanMasterwrote:
Hi BarryNTexas,

What type of mortgage are you looking at, FHA, VA or conventional & is it for a refi or purchase?

 

 

New purchase end of this year to upgrade home.  I will roll my current homes sell dollars into the mortgage once it's sold.  My current home was bought via homeowner finance and was never reported to my files.  I'd like to have a home purchase in my history before I retire in a few years.  The new home will be paid off in 5 years or less.  So type of mortgage is not important but having avoided paying the junk debt scoundrels is front of my mind.  Do you have a particular suggestion to accomplish my above goal? 


There are a couple of options, just depends on your scores & how much you're putting down. 

National Mortgage Banker.
VA Mortgage Expert.
Message 10 of 14