Question Details

Bill G, Home Buyer in Fairfield, CA

My wife and I are attempting to sell our current house and purchase a new house. She purchsed our current

Asked by Bill G, Fairfield, CA Fri Jan 9, 2009

house prior to our marriage. I have an abstract judgement from county of Sacramento for 10,000 due to a prior marriage. I have been making monthly payments to the state and have never missed payment for the last 7 years will this effect us trying to buy a new house

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Dear Bill G.,

In order to answer your question correctly, we will need to know who owns your present home. I am going to assume that your wife owns your home in fee simple because she purchased the home prior to your marriage. If this is the case then I am also going to assume that there is not a lien filed against your present home relative to the judgment, because it is owned by your wife and you do not have any interest (or legal ownership) in your present home.

When your present home is sold, and you have found a home you would like to purchase, I am going to assume that you will not be paying for your new home in cash. Most probably you and your wife are going to purchase your new home jointly, and are going to require a mortgage. If this is the case your lender will require both you and your wife to prepare a list of all your income, expenses, and request a credit report to determine your FICO score.

In this case the payment towards your judgment will probably be considered a monthly expense just like a car payment, alimony and/or child support. There is a formula your lender will use based on your monthly income and expenses to determine which loan program will be the best for you, and at the same time your lender will tell you how much you pre-qualify for so you are looking for homes in a certain price range.

If your credit reports or FICO scores are satisfactory, and your lender determines you qualify for a certain loan program, the payments towards your judgment will probably be considered a monthly expense. If you have been making those payments on time for the last seven years I do not think the judgment itself will affect your desire to purchase a new home.

Please keep in mind that I am not an attorney, nor am I a mortgage loan officer, and therefore I would suggest you pose this question to your lender to make certain what I said is in fact correct.

Best of Luck,
Melissa Solms-Baruth, GRI, CLHMS.
0 votes Thank Flag Link Fri Jan 9, 2009
Contact a mortgage broker who can review all your financial records, credit scores, debt ratio, employment history, judgement (which could be an issue). If you cant due to judgement then remain in home till it is satisfied and move forward. It depends on underwriter approval by the lender.

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0 votes Thank Flag Link Fri Jan 9, 2009
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