This will be long...but I'm looking for help.
Basically, wife and I applied for an FHA Loan and I applied with her as co borrower. Had an old judgment against me for $950 in 2012 that was paid through a garnishment of my wages. Stayed on my credit report and I thought it would do that because looking online that's what I saw people say (it would fall off after time). So because I paid it through garnishment, when the part about judgments on the application was asked "are there any open or standing judgments against you?" I wrote no. We were pre approved and put an offer that was accepted on the house.
Well before it went to underwriting, the judgment was brought up. Apparently my loan officer saw it and asked for more info about it. I went on the public access records for my judgment and was able to get and print a page that showed the judgment as $0.00 balance with a status as closed. Also, the judgment doesn't appear on my transunion report, only equifax, but on equifax it shows as "Satisfied". However, my LO believes that because a settlement of judgment was never filed, that the underwriter is going to want that - showing satisfied or that there is no balance won't be good enough for them (but yet has talked to my wife repeatedly and tells her "everything looks great your file looks great we should be okay! Go figure).
Regardless, I took it further and called Midland Funding (who held the debt). Their system showed it was paid and satisfied; I told them that a settlement of judgment was never filed, and that they and their lawyers (Pressler and Pressler) were supposed to do that. He said he would send me a letter in 7-10 business days saying it was satisfied, and they would put in the settlement of judgment but that it would take 30 days (we close next month on the 30th). He also said they don't do business over email, so he couldn't send me any documentation saying I called or that it was in process or anything. I looked online and saw NJ has a settlement of judgment form that can be filled out by attorneys, with a $50 filing fee. Let's just say I don't feel good or confident that they will spend $50 to file that properly.
I looked up Pressler and Pressler, and they are apparently con artists; deceptive and unhelpful and it basically seems I would get no where with them.
So, is there anything I can do on my end to get this SOJ since the underwriter will likely ask for it? I look online and there's such a minimal amount of info, but what I've read says FHA guidelines dictate there has to be a payment plan put in place for an active judgment, or a judgment has to be settled and closed. Why does having a payment plan in place sound easier? Hell I'd pay the $950 again just to not have this affect getting our house! I feel bad that this affects my gf getting her dream home; and that this could affect the sellers as well. I could see if I didn't pay it, but it makes me mad considering I paid it and I should've been done with it.
Any advice would be appreciated.