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A mortgage company does not actually check for public records. This is done during the title insurance process.

The title insurance company will search for judgments on the parties applying for a loan, and also will make sure that there are no outstanding liens on the property. If there are liens on the property, then the title insurer and lender will want those cleared up before allowing the new policy to be placed into effect.

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There are a lot of "sections" in a credit report:

one of them is "public records", and that is where the bankruptcy-judgments etc are listed.

Charles

I sorry maybe i'm not making myself clear. I wanted to know if the credit report is the only place where they look for public records?

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I smacked my forehead yesterday after Charles replied to the post. Like Duh.........oh yeah, the credit report, because I was beyond the credit report, thinking maybe the credit report was not showing a judgment.

To clarify the original question, there are actually three places where a loan officer could see a public record:

1) Credit Report

2) During title search

3) When an applicant is filling out a mortgage application, on page three, there is a Declaration section. In this section, there are as series of questions asking about judgments, bankruptcies, foreclosure, federal obligations, alimony, and child support. The applicant would need to answer these questions, yes or no. Before the application is complete, the applicant will sign declaring all information to be true and correct. There are monetary and imprisonment penalties for untruthful information. If a lender, in a subsequent investigation of the application decides to audit, and discovers something like this, they can call the mortgage due and payable.

All of the above mentioned public recordsare monetary type records. If you were asking about public intoxication or jaywalking type of public records (even a felony), these would not be included.

It seems that mortgage fraud is on the rise, and stepped up efforts from the FBI are looking more closely to the increased foreclosure rates.

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I smacked my forehead yesterday after Charles replied to the post. Like Duh.........oh yeah, the credit report, because I was beyond the credit report, thinking maybe the credit report was not showing a judgment.

To clarify the original question, there are actually three places where a loan officer could see a public record:

1) Credit Report

2) During title search

3) When an applicant is filling out a mortgage application, on page three, there is a Declaration section. In this section, there are as series of questions asking about judgments, bankruptcies, foreclosure, federal obligations, alimony, and child support. The applicant would need to answer these questions, yes or no. Before the application is complete, the applicant will sign declaring all information to be true and correct. There are monetary and imprisonment penalties for untruthful information. If a lender, in a subsequent investigation of the application decides to audit, and discovers something like this, they can call the mortgage due and payable.

All of the above mentioned public recordsare monetary type records. If you were asking about public intoxication or jaywalking type of public records (even a felony), these would not be included.

It seems that mortgage fraud is on the rise, and stepped up efforts from the FBI are looking more closely to the increased foreclosure rates.

Thanks that is what I needed to know. I have a judgement, but it isn't on my credit file.

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The title companies check to see if you have any liens or judgments against you. They could attach to any real estate you buy so you wouldn't be able to get title insurance, and then no loan.

The Credit is or was pulled by a company called Credco(?) They used to (probably still do) do all the credit for a mortgage lender. They pulled all three credit reports and submit the package the the loan processor that puts everything together.

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The title companies check to see if you have any liens or judgments against you. They could attach to any real estate you buy so you wouldn't be able to get title insurance, and then no loan.

The Credit is or was pulled by a company called Credco(?) They used to (probably still do) do all the credit for a mortgage lender. They pulled all three credit reports and submit the package the the loan processor that puts everything together.

Since it isn't on my credit file call I just say I don't have any judgements?

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Here is the deal.

If you know that there is a judgment against you, and you mark the box or give the info verbal to the application taker, that there not one. You can have serious trouble. I don't think that it ever happens, but it is fraud, and there are possible consequences.

Be that as it may, there is such a major chance that the judgment info will turn up, you should address the issue now, let your LO know. Let s/he be prepared, we all hate surprises.

Charles

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