Forgotten Your Password?

Need to Register?

Question Icon

Judgement on credit report

My wife and I were about to close on a new townhouse in Fort Myers until a judgement showed up on my wife's credit report. The amount was small so we paid it and received a pending warrant satisfaction. We have all the documents. Will our bank still allow us to close? by Rosspa_557_885 from Fort Myers, Florida. Apr 9th 2013 Reply


Edgar DeJesus (EdgarDeJesus)
#197 ranked lender in Florida - 10 contributions

I can't speak for your bank, as a mortgage broker my lenders would be fine providing you show proof the Judgement has been paid. Of course everything else on your credit report must be in good standing. For more information visit our website www.thedejesusgroup.com

Apr 9th 2013
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

Since the lender will run your credit prior to funding, if the judgment shows on the credit report, they will require it be paid.. but you should be asking your loan officer this question, not the internet.. 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. 480-287-5714 WilliamAcres.com

Apr 9th 2013
1
0
Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

only your bank can answer that -

Apr 9th 2013
0
0
Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

You should be fine....they may ask you to document that the money used to pay came from one of your bank accounts.

Apr 9th 2013
0
0

The processor and branch manager said it is up to the underwriters. But I got an email today from the processor stating the credit agency needs the release. Our credit scores are in the low 700s and we have already been credit approved and have a commitment letter. Can the underwriters really decline us because we have a small dollar amount judgement on our report that has been paid? And we have several documents supporting the payment.

Apr 9th 2013
0
0
Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

Hate to say it but depending on the lender / underwriter they can turn down loan BUT it is HIGHLY UNLIKELY.......once you provide them with satisfaction of judgment they will order credit supplement so that the credit bureau confirms paid and you will be fine. Tell your loan officer that you want the supplement done as a RUSH thru credit agency......will cost you an extra $10 roughly BUT you will have peace of mind QUICKER! Don't lose any sleep as you should be fine. Good luck!

Apr 9th 2013
0
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

Yes.. the lender can cancel the loan at anytime prior to funding, and for any reason they deem necessary.. however, when it comes to judgments, they are particularly finicky because of the nature of lien position. If the lender allows the new loan to record when there is a judgment still outstanding, then they will forfeit the first position on the loan, and it now becomes a 2nd position mortgage.. this would not be good for the lender, and it would disallow this loan to be sold on the open market.. for this reason, the lender will not accept just a receipt from you.. they will require the receipt, a letter from the creditor stating the payment has been satisfied, and a release of judgment filed with the recorders office. Here in AZ, recordation is done the same day, and the title company can verify it in 3 to 5 days.. I'm not sure what the process is in FL.. so that's why I recommend you talk to your mortgage guy.. 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. 480-287-5714 WilliamAcres.com

Apr 9th 2013
0
0
Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

See previous answer

Apr 9th 2013
0
0
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

as long as it is satisfied, you should be ok.

Apr 9th 2013
0
0
Subscribe to our news feed.