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flightclub909 · Aug 6, 2012, 07:18 PM

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?

cdad · Aug 7, 2012, 03:40 AM

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.

ScottGem · Aug 7, 2012, 04:56 AM

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?

flightclub909 · Aug 7, 2012, 08:28 AM

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 Once I'm current, the lien is withdrawn, correct?

AK lawyer · Aug 7, 2012, 09:05 AM

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 Once I'm current, the lien is withdrawn, correct?

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.

ScottGem · Aug 7, 2012, 09:53 AM

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.