The very first thing you do is to go back to the terms of the court-order for the judgment, and read it with a fine tooth comb. What dd the court requre?
Initial amount of debt at time of judgment may very weill have provided for terms of additional interest and fees, particularlly if you went in default of the terms of the judgment.
If they they have told you in no uncertain terms that they wont accept anything less than payment in full, then you have to establish what they are legally entiteled to now as debt owed to them.
If you have gone into default on the terms of the prior court judgment, they may be able to go back into court, and get the judgment modified or extended, under the new amount of the debt, an your non-payment of the prior court judgment.
I think you need an attorney, not a mortgage lendor.
If you go before a mortgage agent and tell them that, yes, I have this debt, but it will be paid by funds from someone other than you, that will raise a big red flag.
I think this should be resovled as paid before applyiing for a mortgage. Others will offer their own advice.
