Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?

The judgment will be actively pursued. The person/couple will have zero to minimal money for a down payment for such home to our knowledge. No relatives to help. Thank you.Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
Our company collects on civil judgment. Here's my take on your situation...





Having a judgment on a credit report is not a magic bullet that either forces the debtor to satisfy the judgment, or keeps a credit manager from granting a mortgage or loan. The credit report is not a legal document, and the credit manager is not bound by law to refuse credit because of what it says. It is only a guide upon which a credit manager can base a decision.





Therefore, a good inference you can derive from this, if in fact this couple is, in the end, granted a mortgage: there was something on their credit report that indicated to the credit manager their ability to pay on the mortgage.





Which could be good news for you, in terms of making a recovery...





But that is, frankly, a secondary issue. You do not need to wait to find this out before you proceed. Indeed, I am curious exactly what steps to investigate the financial condition of the debtor you have taken.





You do understand that as a judgment creditor, you have the legal right to know EVERYTHING the debtor owns or holds that can be used to satisfy the judgment - employment, property ownership, investment accounts, bank accounts, stock accounts?





If you know this, have you then followed through with an asset investigation? Or are you relying on what you've heard through the grapevine (';to our knowledge';...)?





Whoever is pursuing the judgment for you needs to conduct a thorough asset search on your debtor. If they have not yet done so, ask them why. If they feel it is not important, find another judgment collector. Trying to satisfy the judgment without investigating your debtor's assets is like going hunting, and not taking any bullets.





If your asset investigation turns up nothing, patience and time can work wonders. What's true this year may not be true in 3, 5, 7 years from now. In the meantime, your judgment is accruing interest.Can a person/couple get a mortgage on a home if they have an outstanding civil judgment against both of them?
ok.. so someone owes your company a lot of money.


($200, $500k same difference as far as this question goes).





When they apply for a loan, they need to tell this to the lender if there are any outstand debts or obligations. When they do a lender is unlikely to provide funding since, there is a real possibility that you could lien the house (and therefore the equity that secures their loan).





If they do not tell the lender and he later finds out, then he can accelerate the loan ..





So it is unlikely that they will get a mortgage unless they hide this fact..





If they can afford a house, then they must have some form of steady income. Why isn't your company pursuing an attachment of that income?





In addition, as the judgement debtor, you can have them called to court to give testimony under oath as to what assets they have and then act accordingly. If they do not disclose assets and you can later prove them, then it becomes a criminal matter. So consider that option also.





Bankruptcy: Yep... that's what its for. Giving someone a clean start. So if they go that route, your judgement may be extinguished by the court. This varies with the circumstances and I am not familiar with those laws, but it is a real possibility. I know if *I* had a judgement slapped on me for that amount I would be looking at that option very closely.





So should you to see if there is anything you can do about it if it happens.
Why are you concerned about the judgment affecting their ability to purchase a house?





If I were you I would be hiding the fact as much as I can, even though it is public records.





Once they purchase a home you can then attached the home with your judgment. They might not be able to pay you at the time, but your judgment will accrue interest. In the state of California the interest is 10% per year.





Now with the judgment on their home, they will not be able to refinance it or sell it without paying you off or making some type of deal with you, so you can get some type of payment for you signing off on the judgment. You might not get it all, but half a cow is better than none of the cow, unless you are vindictive and both of you get nothing.





Once the house is placed in escrow the escrow closing officer will immediately send a demand to you, so you will not even have to follow up or anything except in some states the judgment dies after about 7-10 years so check and see what it is in your state.





You are pulling for the wrong end of he stick. Don't look a gift donkey in the mouth that could be the best thing that happen to you is they purchase a house.





I hope this has been of some use to you, good luck.





';FIGHT ON';
It will be more difficult if it shows up on your credit report.
Irregardless of the amount as long as it does not affect title I have a lender who will approve the deal. Keep in mind that the rate is not friendly and there would be a prepayment penalty (providing the state allows it) but I can do it. Let me know if you need any assistance or if you have any further questions. www.dantadgerson.com.
An open judgement will make it extremely difficult if not impossible for these people to obtain a mortgage. Even if they can get a mortgage, a title search on them would prevent them from closing.





That's not to say they can't get one through a third party.





Re: the BK remedy. I believe if the judgemnet was obtained first, they can list it in a BK.
A 500k judgment will probably prevent this borrower from owning a home. The issue is not the credit, but title. Some companies will finance a borrower with a judgment so long as title is not affected, but I fear with a 500k amount, that will assuredly attach to title.





A possible remedy: Bankruptcy. File the motion to vacate the judgment and state your bankruptcy as the reason. Check with an attorney..Good luck!