If you hold judgements on your credit report can you still receive a mortgage loan?
We have 2 medical-related judgements and one from a credit card on our credit report. We spoke to a lender just about buying a home and he said every mortgage companay would deny us because the people who have the judgements against us would put a lein on the property until they be paid. Is that true?
Answers:
Pretty much true. Generally speaking, you will be denied a mortgage loan if here are outstanding judgments remaining unpaid. The lender is correct. As soon as you take ownership of the property, these judgment can be converted to liens against the property. Lenders don't like such liens.
if you hold those things on your credit it will be difficult to get a mortgage because the lending industry is losing millions on fruitless debt. So they have much less tolerance for potential loss. Basically they are smaller amount willing to make risky loans. And beside three negatives on your credit, you would possibly be seen as a risky loan. If you did acquire a mortgage it would most certainly be at a higher interest rate.
They are correct. Pay off the judgment (or settle with the company) and then apply for a mortgage.
This is where adjectives mortgage loans ARE created equal.
Outstanding judgments that are NOT paid must be salaried before they will loan to you.
Period.
The reason is that most judgements will turn into liens on property once you in actuality purchase property....not always, but most of the time, yes.
Your lender is 100% correct.
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Answers:
Pretty much true. Generally speaking, you will be denied a mortgage loan if here are outstanding judgments remaining unpaid. The lender is correct. As soon as you take ownership of the property, these judgment can be converted to liens against the property. Lenders don't like such liens.
if you hold those things on your credit it will be difficult to get a mortgage because the lending industry is losing millions on fruitless debt. So they have much less tolerance for potential loss. Basically they are smaller amount willing to make risky loans. And beside three negatives on your credit, you would possibly be seen as a risky loan. If you did acquire a mortgage it would most certainly be at a higher interest rate.
They are correct. Pay off the judgment (or settle with the company) and then apply for a mortgage.
This is where adjectives mortgage loans ARE created equal.
Outstanding judgments that are NOT paid must be salaried before they will loan to you.
Period.
The reason is that most judgements will turn into liens on property once you in actuality purchase property....not always, but most of the time, yes.
Your lender is 100% correct.
Related Questions: