Mortgage with judgement

[Anonymous]

Hey there!

We are applying for a home loan and my husband has a repo on his report. We didn't know he had a judgement until the loan officer told us.

I just want to make sure I understand what we have to do to keep moving forward.

1. Pay off the judgement. ~10k.
2. Get on a payment plan and start paying and apply down the road.

We don't have the money to pay it in full. I read one thread where the lady was approved but she had been paying for a while on the judgement.

Can you get approved with option 2 or not really?

[CreditInspired]

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@Anonymous wrote:
Hey there!

We are applying for a home loan and my husband has a repo on his report. We didn't know he had a judgement until the loan officer told us.

I just want to make sure I understand what we have to do to keep moving forward.

1. Pay off the judgement. ~10k.
2. Get on a payment plan and start paying and apply down the road.

We don't have the money to pay it in full. I read one thread where the lady was approved but she had been paying for a while on the judgement.

Can you get approved with option 2 or not really?

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Hi and welcome to myFICO

Ask your LO how this should be handled and follow his/her advice.

[homeloanexpert]

Buying home with a judgment can certainly cause issues. you have several options:

• Negotiate a settlement for less than full balance in exchange for abstract or lien release.
• Negotiate a upront good faith payment and request partial lien release and a promise to pay the debit in installment payments. The creditor may require want to re-record the judgement after you close.
• If you're unsuccessful in negotiating a settlement for less, you can pay the entire judgment at closing.
• Enter into an installment agreement and start making payments. Most lenders will request 3 months payments to be made prior to receiving a clear to close. But there has been some recent changes that no longer require the 3 payments anymore as long as there is an installment agreement in place with a start date. Please understand, every lender is different.

Hope this helps!