Posted: Sat Apr 22, 2006 9:04 pm Post subject: Can I get loan if there is judgement or do I have to wait?
I have a credit score of about 650, however, I have a judgement that will fall off 12/06. I am very interested in buying investment property. Are there any lenders that might finance my purchase with the judgement or do I have to wait? I do not have any late pays on my credit... Thanks for any help.
The credit score looks ok to me. There are many lenders in the market who can help you. Start shopping for the same. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Your credit score is acceptable for many mortgage loan programs … however, as you have more than likely discovered your Judgment can be a mortgage lending issue.
Without additional information as to what type of judgment you are referring to, I am concerned about your statement that the judgment "will fall off 12/06". If you are saying that an adjudicated judgment that has not been paid per court order will simply disappear from your credit report – I must disagree. To my knowledge, judgments and liens on persons will remain forever until they are paid/satisfied.
As to your question of whether there are purchase mortgage programs that allow for open Judgments, Collections, Tax Liens, etc., etc. – the answer is YES (with certain restrictions such as the outstanding condition cannot affect title)
Purchase mortgage programs that allow for such situations are considered higher risk loans that have higher rates, higher fees, require more down payment, etc. Contact a recommended/reputable local mortgage broker that has experience in mortgage lending to borrowers with such situations.
Best of Luck! _________________ Bill Clanton is a Mortgage Specialist and Manager of State Street Mortgage of Illinois. StateStreetMortgage.Net
Bill, thanks for your response. The judgement was filed in Dec. 1999. It is my understanding that collections, liens and judgements can be removed from your credit after seven years even if it is not satisfied. I am interested in buying investment properties with ARM rates for about 3 yrs.
As I stated ... to my knowledge your Judgment WILL remain on your credit until it is paid/satisfied.
Also as mentioned, there are mortgage loans available that will allow certain judgments to remain as long as they do not affect title. The only way to determine if a judgment will affect title is to order a title policy for property you desire to purchase. In your case, if you are preliminarily approved for purchase mortgage financing - you should advise your lender to order title a.s.a.p. to ensure there will not be a title issue that results in a last-minute loan denial.
As far as your desire to purchase Non-Owner Occupied (N/O/O) Investment properties … this type of mortgage lending is considered higher risk than owner-occupied (O/O) primary resident mortgages. Combine the higher risk Investment property mortgage with the higher risk of lending to a borrower with an outstanding judgment and you may find that the final loan program (if approvable) is fairly expensive while requiring a substantial down-payment percentage.
Again, I suggest you contact a recommended/reputable local mortgage broker to research your financing options based on your specific borrowing situation.
Hope this helps! _________________ Bill Clanton is a Mortgage Specialist and Manager of State Street Mortgage of Illinois. StateStreetMortgage.Net
Posted: Sun Aug 20, 2006 7:25 pm Post subject: judgement on credit
A judgement will be removed paid or not at 7 years as per the FCRA. But the judgement can be renewd but not inserted in your report after that. Inturn you will still owe money and they may put a lein on property or bank accounts for up to 20 years. But as for your report its only 7 years. The only item that can stay on your report longer than 7 years is a chapter 7 bankruptcy which is 10 years. Sorry bill you are dead wrong on this one guy.
ttyson722
