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hondaaussie · Feb 20, 2007, 12:47 PM

Will a judgement that is unpaid be removed fom my credit report after 7 years, or will it only be removed 7 yrs AFTER it is paid? I have heard conflicting information.

Also, does anyone out there know if you can qualify for a traditional mortgage loan with a credit score of 650 AND an unpaid judgement?

Thanks!

amolson · Feb 20, 2007, 12:55 PM

Hi there,

It will remain on your credit rating for only 7 years, whether it was paid. However, a judgement may be different than a telephone bill for example. Is this something that went through the courts? If so, I would assume that it will stay with you until you pay it. They can garnish your wages if it is a large amount and if it suits them.

You may be able to qualify for a mortgage provided you don't have any R9's on your credit report. If it is your first home purchase, you will probably have to have a co-signer.

landlord advocate · Feb 20, 2007, 12:56 PM

Originally Posted by hondaaussie

Will a judgement that is unpaid be removed fom my credit report after 7 years, or will it only be removed 7 yrs AFTER it is paid?? I have heard conflicting information.

Also, does anyone out there know if you can qualify for a traditional mortgage loan with a credit score of 650 AND an unpaid judgement?

Thanks!

620 will get you a mortgage. The judgement may have to be satisfied. It is going to depend on how much it is for and whether the plaintiff filed a lien. If there is a lien, chances are the mortgage company will pay off the lien and add that amount to amount that you are borrowing. If the plaintiff files a lien after you own the property, it will have to be satisfied before you can get a home equity loan or sell the property.

hondaaussie · Feb 20, 2007, 01:02 PM

Hi. The judgement was from a citibank credit card debt, and it is for approx $11,000.

Fr_Chuck · Feb 20, 2007, 01:11 PM

Remember just if it drops off the report, most judgements are valid for 10 years ( at least around here they are) and they can be renewed after that for another 10 if the lender shows they have been trying to collect.

With a judgement ( depending on your state) they can attach your bank accounts, garnish your pay check, and perhaps put a lien on a home if you get one.

And although others are smarter than me on credit reporting, even after 7 years I believe a active judgement can still be shown and reported.