Home Buying in 32408>Question Details

Yaya, Home Buyer in 32408

“Can I Buy A House If I Have A Judgement Against Me” in Panama City.

Asked by Yaya, 32408 Wed Sep 21, 2011

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If you have a judgment in which you are not making payments on (and an agreement about payments in writing) then you cannot get a mortgage. The lender wants to be the first lien against the property, but if you have an open judgment, that becomes the first lien. Go over this with your mortgage officer.
0 votes Thank Flag Link Wed Sep 21, 2011
Lenders are forgiving when it comes to collections particularly medical collections and other collections if they are old. However, when it comes to judgments they will most likely require you to settle it before closing or at least show a payment plan which they then would include that payment into your total debt to income ratio.

Jose Morales
Florida Mortgage Coach
NMLS #:225888
“We Coach You Through the Mortgage Process”
0 votes Thank Flag Link Wed Sep 21, 2011
Yes with FHA, VA & USDA financing you can as long as you have been making timely payments on the judgment that can be verified. The judgment won't be required to be paid off, but the payments on the judgment will be included in your debt to income ratio to determine the maximum you can qualify for.

Some lenders FHA, VA, & USDA programs will require the judgment to be paid off even if you are making payments on it, but not all lenders will, your mileage will vary depending on the lenders you speak with. Our guidelines state, "if the borrower has been making regular and timely payments on the judgment or tax lien ... the judgment or tax lien can remain open."
0 votes Thank Flag Link Wed Sep 21, 2011
I can't give you a yes or no answer on this without more detail but can tell you that it is very possible to purchase a home with issues on your credit. In fact, there are also ways to address the credit issue while purchasing.
Give me a call or drop me an e-mail and I can give you a litte more direction to help you with this.
Craig Duran
0 votes Thank Flag Link Wed Sep 21, 2011
If you use cash, you can. If you can get a loan, you can, but I bet it will not be easy.
0 votes Thank Flag Link Wed Sep 21, 2011
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