Hi there My question is..I have a 10,000 judgement from a auto insurance company for an accident that happened while insurance was lapsed, it is from 2001. So far everythings quiet with them and they have not persued this, it is on one credit report. When I go to buy a house, will it be 1) off my record in 7 years? 2) can I get a mortgage even though it isn't paid ? 3) I don't see ever having the funds to pay it off, how would I handle this so I could get a mortgage? Thanks so much for your help.
It might be off your CR's but judgments are good for 10 or 20 years and are renewable. In other words, they can use other means to collect from you including placing liens on real property, freezing your bank accounts and wage garnishments. Once you start making mortgage inquiries, you will wake up the sleeping giant, since they will know you have enough money to be house hunting! I don't know of any lender that would look favorably on you with an outstanding $10,000 (+ interest) judgment. You might find some creative financing method to pay off the judgment at closing (1st +2nd mortgage at once ??) If you don't see having the funds to pay this off, how do you expect to come up with a down payment, closing costs, etc for a mortgage? Not to mention your monthly payments which would be higher even if you got a mortgage somehow.
I had a judgment on my CR when I applied for a mortgage. It was paid and I got a 6% interest rate. I had to give explanation of judgment. I guess it the for the banks protection, so that the creditors wont' place a judgment on the property.
Most lenders would require at least arrangements to be paid being made on the judgement. I had one that I had to pay before I got my Mtg. My rate was 6.75 (for a stated income/No Ratio Loan) which wasnt bad considering that was on there. If memeory serves though if you bought a house now the property could not have a lien placed againt it for something that was donr before you owned the property? I am not positive on that but I thought I heard that somewhere
If you have a judgment against you, and you were even able to buy the property, you can be sure that the creditor will obtain a lien on the property and on anything else of value that you own
