Bad Credit Mortgage Loan With Judgments And Collections

This BLOG On Bad Credit Mortgage Loan With Judgments And Tax Liens Was UPDATED On December 2nd, 2018

What does Bad Credit Mortgage Loan With Judgments And Collections mean

Gustan Cho Associates are specialists in helping borrowers with Bad Credit Mortgage Loan With Judgments And Tax Liens.

We offer bad credit mortgage loan programs and helping home buyers with prior bad credit is our niche in the mortgage market.

Typical borrowers we represent are the following:

  • Borrowers with low credit scores: Credit Scores down to 500 FICO
  • Jumbo Mortgage Loans down to 600 FICO
  • Homebuyers with prior bankruptcies, foreclosures, deed in lieu of foreclosures, short sale
  • Homebuyers with credit scores under 600 FICO
  • Homebuyers with late payments after bankruptcy and foreclosure
  • Homebuyers with recent late payments
  • Borrowers with judgments and tax liens
  • Borrowers with outstanding collections and charge off accounts
  • Homebuyers with gaps in employment
  • Homebuyers who need to obtain home loans after bankruptcy and foreclosure with no waiting period
  • Self-employed homebuyers who need Bank Statement Mortgage Loan Programs
  • NON-QM Loan borrowers:

In this article, we will discuss and cover qualifying for a mortgage with outstanding judgments and tax-liens.

Judgments On Credit Report Versus Other Collections

Judgment debts are different than other collection accounts and charge off accounts on credit report:

  • Judgments do not get written off like credit card debts.
  • A judgment creditor will do everything possible to enforce the judgment
  • Judgment creditors will try to collect on the judgment if they believe the judgment debtor has assets
  • The older the judgment is the better it is on the debtor’s favor for the judgment creditor not enforcing the judgment
  • Being judgment proof means that there is no way for a judgment creditor to enforce the outstanding judgment

This is because the debtor has no assets and/or significant income such as not have a bank account or very little money on bank accounts and those with no significant liquid assets that they can place a lien on.

How Can I Settle Judgments And Qualify For Mortgage?

How Can I Settle Judgments And Qualify For Mortgage?

There are ways of settling a judgment and qualifying for mortgage:

  • Bankruptcy
  • Settling with judgment creditor and pay a discounted amount in full
  • Getting a written payment agreement with the judgment creditor
  • Trying to get the judgment vacated through the court system
  • Waiting Out the statute of limitations on judgment
  • For those who do not want to file bankruptcy, they can negotiate a settlement amount with the judgment creditor:
    • Or make payment arrangements on a discounted amount of the face value of the original judgment
  • A judgment can go away if the judgment creditor does not pursue in enforcing the judgment until the statute of limitations runs out on the judgment and judgment creditor does not renew
  • Statute of limitations on judgments vary from state to state but it is typically 10 years in most states

If the judgment creditor does not renew the judgment on the year that the statute of limitations runs out, judgment debtors are no longer held responsible for the judgment:

  • They have a legal defense if the judgment creditor decides to enforce the judgment due to expiration of the statute of limitations

Qualifying For Bad Credit Mortgage Loan With Judgments And Outstanding Collections

What happens if you have a judgment and want to buy a house.

  • Home buyers can qualify for FHA Loans with outstanding judgments and tax liens
  • This holds true as long as they have a written payment agreement in effect with three months payment history
  • Proof of three months of timely payments will be through copies of canceled checks and a written agreement that has been signed by the borrower and the judgment creditor
  • Judgments and tax liens can be paid at closing
  • This holds true as long as there is a payoff letter by the judgment creditor and/or IRS

Borrowers with payment agreements in force and proof of timely payments will get mortgage loan approval.

Getting Approved For Florida Bad Credit Mortgage Loan With Judgments

How To Get Consent For Bad Florida Mortgages With Judgments

Florida home buyers with unsatisfied judgments and collections can contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at [email protected]

  • We are available 7 days a week, evenings, weekends, holidays
  • We are specialists in helping home buyers in getting Bad Credit Mortgage Loan with judgments approved and closed

This is even for borrowers’ credit scores below 600 and open collections and charge offs.

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