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How do I pay off a judgement?

I am in the process of getting ready to purchase a home. I currently have a judgement on my credit report for $7,500 for a car that was repossessed. I have negotiated with the creditor, and they have agreed to settle for a lower amount. Is there a letter that I need to obtain to that affect to explain this to a mortgage lender? Thank you so much! by alexatt536 from Ailey, Georgia. Sep 8th 2015 Reply


Thomas Dasta (lendfm)
#32 ranked lender in Georgia - 55 contributions

You will need to satisfy that judgment before you can get financing so you will need to pay the amount and then ask for a letter of satisfaction. You can reach me at 678-571-7433 if you have any other questions.

Sep 8th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Your lender should be able to tell you exactly what is necessary and what is acceptable proof of the judgment being satisfied.. but typically, you make payment, and the creditor has to file a "satisfaction of judgment" with the county recorder, and the lender will want a copy of that recorded document. It's possible they might accept a letter, but I doubt it.. If the judgment is not released, then the lenders first lien position would be in jeopardy, so it's unlikely they would accept anything other than a satisfaction of judgment.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 8th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 1,032 contributions

You should work with a mortgage broker that is licensed in the state of Georgia that can contact several of his lenders and find out exactly what the lender will need. Every lender could have slightly different documentation that they will require. It is good timing that you are thinking about this now as you go to pay it off so you can make sure it is done the way a lender that a local lender will use.

Sep 10th 2015
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