I am currently about 3 weeks into escrow. The loan has been approved, minus some small conditions(which my lender claims are MINOR.) I have paid my first part of the closing and will pay the rest at the end. It was just brought to my attention that I am behind in child support and they levied my bank account $1800! I am currently getting an attorney on this matter. My question is: Will this affect escrow? My job and income has not changed nor has my credit report. I am paying child support now and they are adding arrears to it which means, eventually, it will be paid off. Can this prevent me from getting this home?

So long as you can fund the contracted amounts then there should be no problem. The problem comes in when you don't have the funds. Then you can't complete the signed / agreed contract of sale.

Well I see another issue. If you did not report the support payments to the lender, they may withdraw the loan. If your income can handle all obligations then it shouldn't be a problem as long as you can provide the funds.

But I have another question. You stated; " It was just brought to my attention that I am behind in child support". How is this something that you just find out about?

Let me correct that. I know about the child support because they are garnishing my pay. I was unaware of any arrears. I have money the funds to close, that isn't a problem. Once escrow closes, I believe it's possible for them to put a lien on the home right? I owe about 6k in arrears. Once I'm current, the lien is withdrawn, correct?

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Originally Posted by flightclub909

... Once escrow closes, I believe it's possible for them to put a lien on the home right? I owe about 6k in arrears. Once I'm current, the lien is withdrawn, correct?

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If "they" first sue you and get a judgment against you, then they can record the judgment and that would become a lien. And of course, if the lien is paid off, you can ask them to discharge the lien.

Depending on where you are, it may be possible for the child support collection agency to place a lien on the home without suing and getting a judgement. They seem to have had the power to attach your bank account after all.

But a lien on your house is ineffectual. Since you are just buying, you are not planning on moving for awhile (I assume) so a lien gets them nowhere.

So the lender knew about the garnishment? Then you should be OK with the lender, even if you didn't know about the arrears. I still wonder about that, though. As long as you have the available funds fro closing you should be OK.