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it_guy08 · Joined: 22 Jun 2011 Posts: 7 2.05 Dollars($)

I'm a month from closing and I found out there is a note in the paperwork about getting Judgement paid off but the Underwritter has not mentioned its something I need to pay off. My Mortgage guy that works with her said its probably nothing to worry about since it was not sent to me with the rest of the missing required docs this month during underwritting(misc docs that still needed signed).

This is a Civil Judgement from an old landlord 7 years ago for $275. I talked to the courthouse and they said they don't handle payments for Civil Judgements. I have to find the guy, mail him a check and get him to send a letter to the Courthouse to get it settled. I sent a check back then, it was never cashed, the guy moved out of state and I couldn't find him or get ahold of him so I forgot about it.

Can the $275 Judgement be overlooked with FHA for this type of situation? My scores are good, income high, and everything else seems to be going very smooth, there is nothing else on my credit even.

I'm in Maryland by the way.

gmakerley · Posted: Wed Jun 22, 2011 10:09 am Post subject:

It's entirely possible that your lender will overlook the judgment. Present your case and see if they'll waive it. Often, if title insurance will cover the potential lien coming from a judgment, a lender will allow it to sit while granting the loan.

Your "mortgage guy" is a fool. Nobody should ever overlook what the underwriter has requested...and if anybody should know that, it's the "mortgage guy" who has probably bollixed up other closings before yours.

it_guy08 · Joined: 22 Jun 2011 Posts: 7 2.05 Dollars($)

I'd just hate to see a small judgement like this kill the loan right at the end. If they decide to waive it will I be required to ever pay it off? My issue is I'd pay it if I could find the guy and the Courthouse won't accept payment for the judgement or send him the payment and give me a receipt. Over all the guys been gone from Maryland for 6-7years now.

it_guy08 · Joined: 22 Jun 2011 Posts: 7 2.05 Dollars($)

I just read a lot of FHA info on sites and it all seems to say you have to pay off a judgement before closing. I guess I'll have to hope for the best.

adonis · Posted: Wed Jun 22, 2011 11:10 pm Post subject:

Hi it_guy,

If the judgment has been waived off, then they cannot come after you to recover the same. If they wish to recover the debt later on, then they will have to file a fresh cash and get a new judgment against you. If you want to qualify for a loan, then the lender will ask you to pay off the judgment.

it_guy08 · Joined: 22 Jun 2011 Posts: 7 2.05 Dollars($)

Well I was told to send a letter of explination. My Mortgage guy said not to stress they will find a way to work with it. He said they would not deny the loan for a $275 civil judgment.

With my circumstances it will probably get waived - The courthouse said this type of judgement must be paid only directly to the Plaintiff and the curthouse will not accept payment for the plaintiff. They said its on the property owner to be kind and send a Satisfied (Paid In Full) to the court. This property owner is long long gone though so it will probably never get satisfied unfortunitly.

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FHA Mortgage with a Judgement?

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