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Good day everyone. I have a judgement that is subject to fall off in August 2012 on my EQ and TU. Its has already fallen off my EX. I'm in geat position to buy a house and I know that it's not gonna happen with a unpaid judgement. My question is should I wait for the judgement to fall off before I awake the sleeping giant and offer a settlement? Or should I go to get pre-approved and handle it when the underwriters make it a condition to have it taken care of? I say this cause my scores are in the 700's and this is the only thing that is on my credit file.
I would wait until UW make it a condition. It is my understanding that it is better to not have paid any baddies in the last year. Plus if its scheduled to fall off this August.. it may be off by the time you get to UW so you wont even need to. But in my opinon from what I have read its best to not pay it until they say too, especially because it can cause a drop in score
Thanks for the reponse jules0580. That being said, how will the underwritwers look at it, lets say I pay it, and my score take a fall? will they then make their decion on percentage rate from the first score or after the judgement has been paid?
No usually they run your credit with the app and then they use that, if they have conditions they will ask for you to pay it and provide proof of payment, after which they dont look at your score again really so it wont matter.
I disagree with the above. Actually a judgement is handled differently from a collection. Judgements just don't fall off.
It doesn't matter if its on your credit report or not. The judgement is a public record that stays on your public record forever. It is either an unpaid judgement or a satisfied (paid) judgement. The only exception is if you could get the judgement vacated and that is another discussion. Check the statutes in your state to see how long judgements are valid where you are located. Here in Fl they are valid for ten years and can be renewed for another ten years. Some jurisdictions in other states have a 20 yr judgement off the bat. Check your state so you know for sure.
The bank will have the attorney or title co check you for any judgements right away and you won't be able to get your mortgage with an unpaid judgement. The problem with having the bank run your credit for a mortgage application first is that the judgement holder won't be very negotiable at all for the judgement amount because they know you are trying to buy a house. It is far better to take care of the judgement before you ever make a mortgage app - that is when you are in the very best position to negotiate the amount and get a satisfaction recorded.
SO10 is correct, an unpaid judgement doesn't go away and can be renewed.
CRAs sell your information, OP. Mortgage puls are coded differently. In a nutshell; once it's clear you're trying to move on, they have new leverage to collect an unpaid debt. Worst case scenario would be them renewing the judgement and extending the public record's life.
@cuwhite5 wrote:Good day everyone. I have a judgement that is subject to fall off in August 2012 on my EQ and TU. Its has already fallen off my EX. I'm in geat position to buy a house and I know that it's not gonna happen with a unpaid judgement. My question is should I wait for the judgement to fall off before I awake the sleeping giant and offer a settlement? Or should I go to get pre-approved and handle it when the underwriters make it a condition to have it taken care of? I say this cause my scores are in the 700's and this is the only thing that is on my credit file.
This judgment may be outside of the Statute of Limitations in your state. Before you offer a settlement, I would spend a few dollars on legal advice. The minute you contact them with a settlement offer, it MAY reset the clock on your Statute of Limitations. In my opinion, the underwriters may not require you to pay or settle, considering that its outside the Statute of Limitations. Certainly you can tell your lender about the judgment and ask their advice before proceeding.