workinninetofive Posted February 12, 2005 Report Share Posted February 12, 2005 I didn't want to side track the previous thread...If you have no judgements on your record, will there be a check/search for judgements? If, so if you are living in another state with this show up? Thanks. Link to comment Share on other sites More sharing options...
choiceworthy Posted February 12, 2005 Report Share Posted February 12, 2005 I have never seen any lender ask for an type of independent search for judgements that do not show up on the credit report. That is not to say the judgement cannot pop up. There are companies that search public records to maintain private databases which they sell to the major repositories. Sometimes their information is updated at the most inopportune times.I have seen it mentioned on online forums that the title search involves some sort of judgement search on the buyer. This is contrary to what I have witnessed in real life and would have killed tons of closings if it were true, as well as eliminate many subprime programs and grossly increase the cost of a title search. Link to comment Share on other sites More sharing options...
amortgageman Posted February 12, 2005 Report Share Posted February 12, 2005 I have seen it mentioned on online forums that the title search involves some sort of judgement search on the buyer. This is contrary to what I have witnessed in real life and would have killed tons of closings if it were true, as well as eliminate many subprime programs and grossly increase the cost of a title search.The title company does search the buyer. Have you ever taken the time to read the title work? There is a section that clearly spells this out. In another section, it will list all the liens (usually mortgage payoff) on the property. These must be paid for the seller to sell the property.Have you ever done a refinance loan???? If there are liens placed on the home, what must happen to those liens before the refinance transaction can be completed? They must be paid off or an agreement signed by the lien holder to take second position behiind the new mortgage. (Like that is going to happen.) This is a sure way for the lienholder to get their money. A homeowner cannot not sell the property until all liens are cleared, and clear title is passed on to the new buyer. Is a title company going to issue title insurance to the new buyer knowing that there are still liens on the property?? I don't think so.Further, if there are state, federal, other government, child support judgments, they can be placed in front of the mortgage. This is why the majority of nonprime lenders will not lend if there are these tyes of judgments are on the credit report.How many properties do you see sold for "back property taxes?" Have you ever heard stories of homeowners associations attempting to foreclose on properties of unpaid homeowner association dues? If this were not a problem, then why has Fannie Mae addressed this very issue in their updated underwriting guidelines?? Link to comment Share on other sites More sharing options...
amortgageman Posted February 12, 2005 Report Share Posted February 12, 2005 If you have no judgements on your record, will there be a check/search for judgements? If, so if you are living in another state with this show up? Thanks.Yes, a judgment search is done on the buyer of a property. It is very important to note, that when you are purchasing a property, rarely will a judgment affect the title of your purchase. Plain and simple, when you are buying a home, you could not have a lien placed on a property that you do not own. This would not affect the purchase transaction.When you do have a judgment, and if the party that has filed the judgment finds out that you now have property, they can then attach a lien to the property once you own the property.http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=25521 Link to comment Share on other sites More sharing options...
choiceworthy Posted February 12, 2005 Report Share Posted February 12, 2005 ...The title company does search the buyer. Have you ever taken the time to read the title work? There is a section that clearly spells this out. In another section, it will list all the liens (usually mortgage payoff) on the property. These must be paid for the seller to sell the property.I have personally examined hundreds of titles. Here is some examples of boiler plate title insurance policies provided by ALTA:Full policy: http://www.alta.org/forms/loan.docShort form: http://www.alta.org/forms/short_102100.docOwner policy: http://www.alta.org/forms/owners.docAs you can see, any mention of judgments on the buyer is covered in the EXCEPTIONS or EXCLUSIONS sections. The policy clearly does not cover any defects, liens, encumbrances, adverse claims or other matters attaching subsequent to Date of Policy. As such, the TITLE company has no reason to do any such search on the buyer. Their interest is providing clear title on the PROPERTY. If the title company had a problem with future issues they would never issue policy when lenders are willing to disregard such issues or when lenders are willing to let the borrower put spouses on the title who are not on the loan. As you know, many lenders are not willing to take such chances but when they do it is not a concern of the title company.Have you ever done a refinance loan???? If there are liens placed on the home, what must happen to those liens before the refinance transaction can be completed? They must be paid off or an agreement signed by the lien holder to take second position behiind the new mortgage. (Like that is going to happen.) This is a sure way for the lienholder to get their money. A homeowner cannot not sell the property until all liens are cleared, and clear title is passed on to the new buyer. Is a title company going to issue title insurance to the new buyer knowing that there are still liens on the property?? I don't think so.Further, if there are state, federal, other government, child support judgments, they can be placed in front of the mortgage. This is why the majority of nonprime lenders will not lend if there are these tyes of judgments are on the credit report.How many properties do you see sold for "back property taxes?" Have you ever heard stories of homeowners associations attempting to foreclose on properties of unpaid homeowner association dues? If this were not a problem, then why has Fannie Mae addressed this very issue in their updated underwriting guidelines??Exactly. Any encumbrance on the property prior to issue of a new policy has to be addressed before the title company will write the policy. Any issue that might cloud the title subsequent to closing or impair the borrower's ability to fulfill their obligation is of GREAT concern to the lender. The first place to look is the credit report and declarations many of which will trigger requests for additional documentation. Any documentation provided by the borrower during the normal process of the loan is also scrutinized for any evidence of impending problems. To date, I have never seen any request for any type of independent search for judgements on the buyer that were not uncovered by the credit report or by the normal underwriting procedures. Link to comment Share on other sites More sharing options...
choiceworthy Posted February 12, 2005 Report Share Posted February 12, 2005 I didn't want to side track the previous thread...If you have no judgements on your record, will there be a check/search for judgements? If, so if you are living in another state with this show up? Thanks.An additional aspect on such a scenario that should be taken into consideration:The first question on the declarations is "Are there any outstanding judgements against you?" Even if the judgement does not show up on your credit report it would show up on the declarations, unless you are willing to commit fraud during the application process which is a whole other can of worms. Link to comment Share on other sites More sharing options...
amortgageman Posted February 12, 2005 Report Share Posted February 12, 2005 It is very important to note, that when you are purchasing a property, rarely will a judgment affect the title of your purchase. Plain and simple, when you are buying a home, you could not have a lien placed on a property that you do not own. This would not affect the purchase transaction.Any issue that might cloud the title subsequent to closing or impair the borrower's ability to fulfill their obligation is of GREAT concern to the lender. The first place to look is the credit report and declarations many of which will trigger requests for additional documentation. Any documentation provided by the borrower during the normal process of the loan is also scrutinized for any evidence of impending problems. Link to comment Share on other sites More sharing options...
choiceworthy Posted February 12, 2005 Report Share Posted February 12, 2005 That pretty much sums it up.Disregarding academic discussions of who does what and when and where and why and how, I think we are all in agreement that the bottom line is that if a judgement exists it ultimately needs to be disclosed and dealt with.My very first comment in this thread was indulging in a bit of hypothetical conjecture of what a borrower might be able to get away with and by itself was incomplete and misleading. I appreciate the fact that subsequent discussion forced the relevant issues on the table. Link to comment Share on other sites More sharing options...
workinninetofive Posted February 12, 2005 Author Report Share Posted February 12, 2005 Yes, I have one.. something that wasn't delivered to me. Is not on all the reports.. about the fraud, I could always say that it wasn't served to me, which is true. I have thought about trying to vacate it or work on it, but the thing is it's only on 1 report. I do not want them popping up on the other 2. In addition, I do not have the money to pay it.I will also add, its stated. Link to comment Share on other sites More sharing options...
choiceworthy Posted February 13, 2005 Report Share Posted February 13, 2005 Yes, I have one.. something that wasn't delivered to me. Is not on all the reports.. about the fraud, I could always say that it wasn't served to me, which is true. I have thought about trying to vacate it or work on it, but the thing is it's only on 1 report. I do not want them popping up on the other 2. In addition, I do not have the money to pay it.I will also add, its stated.In this case disclosure is a moot point. It only needs to be on one report to get the underwriter's attention. Some lenders are willing to disregard judgements withing varying parameters of age and/or size but rate shopping can force a dramatic attitude adjustment when going with some of them. Link to comment Share on other sites More sharing options...
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