Mortgage Approval With Unsatisfied Judgments And Tax Liens

This BLOG On Mortgage Approval With Unsatisfied Judgments And Tax Liens Was UPDATED And PUBLISHED On February 27th, 2020

Can You Get A Mortgage Approval With Unsatisfied Judgments?

Borrowers can qualify for mortgages with bad credit. Not only Can You Get A Mortgage Approval With Unsatisfied Judgments, but borrowers can qualify for home loans with the following:

• Outstanding Collections without having to pay them off
• Outstanding Charge Offs without having to pay them off

Judgments and Tax Liens:

• This holds true as long as borrowers can get written payment agreements by judgment creditors and/or the Internal Revenue Service and three months payment seasoning
• Late Payments in the past 12 months
• Late Payments after bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale

In this article, we will discuss and cover Mortgage Approval With Unsatisfied Judgments And Tax Liens.

How To Qualify For Mortgage Approval With Unsatisfied Judgments

Judgments are one of the worst things consumers can have on a consumer’s credit report.

• Most creditors are reluctant in granting credit to loan applicants who have unsatisfied judgments  
• A judgment creditor can enforce a civil judgment by garnishing wages or attaching liens to assets
• However, most judgment creditors do not enforce their judgment
• This is because it is time-consuming and costly
• In order for a judgment creditor to be successful in collecting anything from a judgment debtor, the judgment debtor needs to have assets
• If the judgment debtor does not have any assets, the judgment debtor is judgment proof
• This means that the judgment creditor cannot do anything to collect on the judgment
• Most states have strict laws that protect judgment debtors

How Can I Get Rid Of A Judgment?

Four ways to get rid of a civil unsatisfied judgment.

• The first way is trying to get the judgment vacated
• Those who were not served with the judgment the right way can appeal the judgment
• They can see if they can get it vacated
• We will cover on how to get a civil judgment vacated in future blogs
• Another way of getting rid of an unsatisfied judgment is by negotiating with the judgment creditor on accepting a certain percentage of the judgment
• Consumers can get rid of judgments by settling it where the debtor has no more liability
• Make sure to get a final payoff letter and a release to record the judgment as being totally satisfied on public records
• The third way of getting rid of unsatisfied judgment is by filing for Chapter 7 bankruptcy
• Chapter 7 Bankruptcies wipe out unsatisfied judgments
• Consumers will no longer have the outstanding liability if they include the unsatisfied judgment on Chapter 7 bankruptcy

The fourth and final way of getting relieved from paying unsatisfied judgment is by waiting out the statute of limitations.

How Long Are Judgments Effective For

Judgments are the worst derogatory credit item any consumer can have.

• The judgment will remain on credit report for a period of seven years
• However, most judgments are good for ten years from the date the judgment was entered
• It depends on which state the judgment was entered
• Most states also give the judgment creditor an option to renew the judgment for another ten years

For example, here is a case scenario:

• if a consumer had a civil judgment entered in Florida ten years ago
• the judgment creditor has an additional ten years after the original ten years where the statute of limitations has expired

Many judgment creditors do not renew their judgments after the statute of limitations runs out.

Qualifying For Mortgage With Unsatisfied Judgments Without Filing Bankruptcy

The answer to this question is YES!!!!

• Borrowers can get mortgage approval without filing for bankruptcy if they have unsatisfied judgments
• Most lenders do not like the idea unsatisfied judgments
• However, if borrowers have a payment agreement with the judgment creditor and have proof making three continuous monthly payments, borrowers will qualify for a mortgage

Borrowers need to provide the settlement agreement plus provide three months’ worth of canceled checks and/or bank statements.

Qualify Now With Direct Lender With No Lender Overlays

Borrowers looking for a direct lender with no overlays please contact Gustan Cho Associates. Please contact us via calling us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

Related> Can I Refinance With Judgment?

Related> Refinancing With Judgment

This BLOG On Mortgage Approval With Unsatisfied Judgments Was UPDATED On November 12th, 2018