babynurse31 Posted January 17, 2005 Report Share Posted January 17, 2005 My DH and I are attempting to clean up our credit and would like to purchase a home in the near future. I have 2 judgments against mine, one from an old CC issued in 1999 and a medical judgment from 2000. The credit card judgment is not on my report but I have been paying via garnishment for some time and it should be paid in full within 6 months. The medical judgment is on mine & DH CBRs for $565. I have never received any information from this creditor regarding the judgment. Do these both need to be paid in full before qualifying for a mortgage?If they are not listed on the credit report, how will the mortgage company know they exist?Thanks for all your help!!! Link to comment Share on other sites More sharing options...
dm91497 Posted January 17, 2005 Report Share Posted January 17, 2005 The mortgage company may not know they exist but when a title search is completed for a title insurance policy they may unearth it at the hall of records. I honestly don't know the what happens at that point. I don't think the title insurance company will write a policy without the payment of the judgement. Link to comment Share on other sites More sharing options...
babynurse31 Posted January 18, 2005 Author Report Share Posted January 18, 2005 Ok, I thought the title search was only on the property who are buying. I didn't realize they did a title search on the buyer also. Will the judgment that they are garnishing for need to be paid completely also? Or since I am making payments is that good enough?Thanks for all the help with my questions! You guys are a wealth of information!! Link to comment Share on other sites More sharing options...
dm91497 Posted January 18, 2005 Report Share Posted January 18, 2005 I am sure someone here will correct me if I am wrong as I am not an expert on title, etc. My friend used to work at a title company and they would research the land/house title as well as the applicant because any outstanding judgment or lien against the applicant/new owner can be held against the property. I do not know if the judgement will need to be paid in full since they are garnishing. It would make sense that it would have to be paid in full. Link to comment Share on other sites More sharing options...
ghacorp Posted January 19, 2005 Report Share Posted January 19, 2005 Yes, mortgages can be underwritten with existing judgments. Many large institutions will not, but there are plenty of other investors who will. Non conforming loans however do not come at the most attractive rates. Link to comment Share on other sites More sharing options...
amortgageman Posted January 19, 2005 Report Share Posted January 19, 2005 Other memebers have clarified this topic a bit, and I replied to a thread earlier this week about the same topic. I will post the reply here, and then work more with your specific situation. If there are any judgments on your credit bureau (even the ones that some have successfully deleted), they may show up on title search.Title searches search the property, the seller, and the buyer.This helps the buyer (lender) to make sure that nobody has claims to the property (I just ran through a purchase, and three previous owners ago a Federal Tax lien showed up on the property. the new buyer does not want that obligation, so the lien must be cleared before or at closing to give the buyer a "Free and Clear Title. I hope this example helps)As far as any personal issues that may come up on your side, RARELY, (most likely federal, state or child support issues), do they have an effect on the buyer being able to purchase. But be aware that if there are such issues, they could be attached as liens at a later date. The purchase would be probably be okay. You have one judgment which you are already handling, and continued payment (as if you had a choice), will solve any issues regarding title. You may consider trying to get this taken care of in full prior to closing, especially, if these are the only two real issues you have holding you back from a good mortgage. For the second medical judgment, you should so some investigating to be sure that this is really your debt. If it is, try to get this taken care of as well, but make sure it is yours first.These wo judgments may show up when your title search is conducted, but I really do not think they would be an issue, nor cause a purchase transaction to fall through since they do not affect title to the home. (But it could be possible to become a burden in the future) Link to comment Share on other sites More sharing options...
bigdaddyroy Posted January 19, 2005 Report Share Posted January 19, 2005 While your exhausting all means to correct the aforementioned, you should try to vacate those judgements. Try this link:http://www.nwjustice.org/docs/6314.html Link to comment Share on other sites More sharing options...
babynurse31 Posted January 19, 2005 Author Report Share Posted January 19, 2005 Is there a time limit of when you can request to have a judgment vacated? Also, what's the best way to verify that this is my debt before payment?Thanks again! Link to comment Share on other sites More sharing options...
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