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judgement on credit report

i am wondering if a judgement has to be paid in full BEFORE closing or if it can be paid at the time of closing... from my understanding most lenders go by your middle fico credit score... my lowest score has a small 315 dollar judgement on it which will be thrown out and disregarded from a scoring standpoint from what i understand however even though the judgement is only on that lowest credit report it still needs to be paid before closing is what ive been told...heres the problem : this was a small civil case small claims court and i have attempted to pay this at the local court house but the court house told me they dont accept payment that i would have to pay the plaintiffs themselves and hope that they will file the proper documentation to prove "satisfaction of judgement" ..i asked the courthouse if they have these "satisfaction of judgement" forms for them to fill out at the time of payment and they told me no that they dont handle any of that...that it is up to the plaintiff/plaintiffs attorney... well now im stuck trying to track these people down and if or how i would get what ever proper documentation into the courts to show its been paid...i have the 315 to pay..just trying to figure out how to make it shown that it has been paid....or wondering if i even need to worry about this and just pay the 315 during closing and the attorney at closing would handle getting the satisfaction of judgement form?????? lost at what to do by whgoff_873_173 from Charleston, West Virginia. Aug 25th 2011 Reply


Tim Simpson (Tim Simpson)
#4 ranked lender in Maryland - 6 contributions

Normally how that works is you can proceed with the Mortgage and get thru Underwriting, but they will need to see that paid off prior to drawing docs to close. So depending on how long it takes to close the Mortgage it could be 3 to 6 weeks on average. I hope this helps..

Aug 25th 2011
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Chasity Graff (Chasity)
#9 ranked lender in Louisiana - 29 contributions

I would contact the attorney directly and offer to pay the judgment but only if he gives you the release when you submit the payment. Don't let them file the release for you because there is no guarantee it will be done a in a timely manner. In the past I've had to prove the judgment was paid prior to closing - but you can ask your lender or mortgage professional for an exception to pay at closing if possible. Make sure you keep a copy of the release and dispute the judgment on your credit report as paid (and mail in a copy of the release) so your credit can be updated asap.If you want to try and google the release form in Louisiana we call it a "Request for Cancellation". Good Luck!

Aug 25th 2011
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Chasity Graff (Chasity)
#9 ranked lender in Louisiana - 29 contributions

And you will need to go to the clerks office to file the release to prove to the lender that it's paid...

Aug 25th 2011
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Deborah Garvin (loanmonarch)
#492 ranked lender in California - 53 contributions

Please consult your mortgage consultant directly.because lenders will address this issue differently. I have had situations that were similar in which my underwriter required the borrower to leave the funds in escrow for a given time until escrow/attorney's could work it out to get a release. The judgement is low enough that I would think there will be a resolution for you. However, there is no way to know the specifics except directly from the lender you are working with or choose to work with. Best of luck!

Aug 25th 2011
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