Legal Question in Real Estate Law in California
Buying a house with judgements
I have been approved for a Fha mortage, but I have 2 judgements against me, one is currently being garnished from my payroll check every 2 weeks, but the other is not, but neither one is shown now on my credit report, but is shown in my city on the county recorders office, the bank where I was approved doesnt know about the judgements, they are asking me to explain what the private debt recovery is which is shown on my paystubs, my question is if I do find a house to buy, will the judgement stop me from buying a home, will they be able to find out that I have judgements when it goes through Escrow, and would they have to be paid off prior to getting the loan?
4 Answers from Attorneys
Re: Buying a house with judgements
You cannot hide the fact in making application for a mortgage, but, it will not necessarily prevent you from buying.
Re: Buying a house with judgements
You have to disclose to the bank the judgment liens against you. If you fail to do so, you have commited fraud and could be sued and prosecuted. Unless you don't care if you go to prison, I would recommend against "rolling the dice."
Re: Buying a house with judgements
Yes, they should find out about the judgments and yes, that should keep you from getting a loan. What are you thinking???? Shame on you for not paying your debts and still trying to get a loan for a house which you cannot afford. Remember, a failure to tell the truth in a loan application to FHA is a federal felony crime and you could even go to prison!!! It is conduct like yours which has caused the current mortgage loan crisis--you are supposed to always tell the truth.
Re: Buying a house with judgements
Yes, they should find out about the judgments and yes, that should keep you from getting a loan. What are you thinking???? Shame on you for not paying your debts and still trying to get a loan for a house which you cannot afford. Remember, a failure to tell the truth in a loan application to FHA is a federal felony crime and you could even go to prison!!! It is conduct like yours which has caused the current mortgage loan crisis--you are supposed to always tell the truth.
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