when a judgement is filed against you by default or you lose in court, does that automatically exclude you from being able to buy a house? I have 2 unpaid judgements left from hospital collections, these are NOT on any of my credit reports but I am concerned that it will prevent me from being able to buy in the future. Anyone have any experience with this?
If they are not showing on your credit report, there is a good chance they will not effect your mortgage. But, if you exclude them from any personal financial statement, it could be a problem if discovered. Most mortgage lenders will review only what is on your credit reports regarding debts.
I thought I read that in most cases the lender would require the judgement to be paid as a condition of the loan. One of the judgement is a few hundred dollars which I am now in a position to pay. The other one is a few thousand dollars,plus interest etc...that I could not easily pay.
Well, to be straightforward here, it's a matter of knowledge of the judgement, and your degree of disclosure. If they are not on your credit reports, then they may fly under the radar, but if you are required to submit full financials listing all assets and debts, then.....it's your call and risk. If a public record search is done, they will show up most likely, and I don't think you wan to be caught in that position. Generally paying off judgements is a requirement as they can put a lien against your property for the amount of the judgement. I recommend that you pay them if you can, or make arrangements for payment. If you proceed with a mortgage process, and this comes up, you could stand to lose fees and monies paid. It's all a pretty substantial risk.
From my experience and what I've been told by Lenders that I do business with, if you have a personal judgement on your credit report and it's under 5000 dollars, the lien will not attach itself to the house. It's up to the lender whether or not they want to lend to you if there is judgment on your CR.
