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kg1997

Trying to buy our first home but old paid judgment may screw it up..advice?

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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.

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I'd threaten to sue them if I couldn't close on time because they hadn't sent it. You'd have damages, too. They are the dregs of the dregs. Most of these guys just don't bother to report the judgment satisfied. Also, for the rest of your life, you have to answer "yes" to the judgment question, whether it's on your reports or not.

 

All that, and I'm not a mortgage pro - wait for them to answer. :D

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File a complaint Against Midland and Pressler with the CFPB

 

that should get their attention since both Firms are under CFPB consent orders.

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I agree with the above. Write a certified letter to both Midland and Pressler advising them that if the situation is not immediately rectified you intend to sue for any and all losses and damages incurred in the process of obtaining a mortgage for the home, as well as any transactions from this date forward that are adversely effected by their negligence.

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Wow great responses. Thank you. How would I go about writing this letter?! Any templates I could look for? I'd like to send this out immediately, since we don't close until the 30th of September. Should I do the CFPB complaint as well?

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I'd just write my own letter stating that I discovered that the judgment had not been updated as satisfied while in the process of obtaining a mortgage. That my closing date is ----. If I am not able to close because of their failure to update the record, I intend to sue them for any and all damages.

 

I'd give them 10 days.

 

It doesn't matter if you don't sound like a lawyer. They are already in trouble.

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Okay thats great advice. I will type up the letter, but I also saw this:

 

https://www.judiciary.state.nj.us/civil/forms/11009_warrantsatisfy.pdf

 

This is the documentation to satisfy it. Should I include this in the letter, ask them to fill it out and send it back to me and I will file it myself?

 

Also, should I be filing a complaint with the CFPB at the same time?

Edited by kg1997

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UPDATE: The UW came back and approved the loan, however under the condition that we do have the settlement of judgment. Such a punch in the gut and my LO and my real estate attorney are basically saying "good luck". Excuse my language but **** Midland Funding!

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I was in this very situation twenty years ago. A certified letter took care of it immediately. You can shoot a letter out faster than an attorney will and I don't think you need to spend the money.

Edited by jumpingjack

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Definitely use the CFPB. That gets attention a lot more quickly than an attorney, and the problems are usually resolved quickly. The best part is that it's free. :good:

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