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dadufal

paying off judgment?

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I was recently told by a mortage broker that in order to meet the FHA guidelines my wife would have to pay off her judgment. The broker told me that public records won't impact her score if paid. From my understanding this would impact her credit score due to recent activity on her file if reported as paid. Can anyone provide insight in to this? thanks!

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I'm guessing that a judgement is different from a collection account in that regard. I'd be inclined to believe but perhaps others will chime in.

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if the banks want it paid for a mortgage you will not have a choice but to pay it. It may not pass through an "automated" approval but the manual underwrite will be where it makes the difference.

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if the banks want it paid for a mortgage you will not have a choice but to pay it. It may not pass through an "automated" approval but the manual underwrite will be where it makes the difference.

 

we have no choice but to pay since it's part of the FHA guideline so is meeting the minimum score of 620 in which she's there. I'm afraid that by paying, it will drop her below that mid score minimum. this sucks!

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I wouldn't think that paying a JUDGEMENT would make her score drop. Paying a CA, mmmm not necessarily a good thing. I don't know...I can't remember what happened when ours were deleted. I think they went up. You can dispute it off the credit reports and see if it goes up. You will still have to pay it for the FHA financing, but usually a CRA does NOT get verification on a judgement/public record. It *should* fall right off if you dispute it.

Edited by cfj503

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It's a risk you have to take - you have no choice but to pay the judgment according to FHA guidelines. For the record, paying a judgment off did nothing to two of my scores. Getting that same judgment deleted from one of my reports dropped the score - due to segmentation, I suspect.

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I've never heard of a judgement being update as paid and causing a score change. I believe the only date that is listed on a judgement entry is the date filed which won't be changed if it is paid.

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I've never heard of a judgement being update as paid and causing a score change. I believe the only date that is listed on a judgement entry is the date filed which won't be changed if it is paid.

 

The report SHOULD theoretically update to show satisfied, which can alter the date fields. And, in that scenario, the score COULD go up or it could go down.

 

OP may wish to remit certified funds to the Court of record and immediately take the receipt to the broker before the reports have a chance to be updated. That eliminates the entire issue of what impact this has on the score...

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We just closed about three weeks ago and I had the same situation. An old judgment that they wanted paid. What my lender did was have the title company cut a check at closing made out directly to the holder of the judgment. So if it reports paid or not, I don't care, as we've already closed and the judgment is due to fall off in 11 months, anyway.

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We just closed about three weeks ago and I had the same situation. An old judgment that they wanted paid. What my lender did was have the title company cut a check at closing made out directly to the holder of the judgment. So if it reports paid or not, I don't care, as we've already closed and the judgment is due to fall off in 11 months, anyway.

 

i'll check with our broker hopefully this is an option for us. thanks

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