Fairfax, VA · Member since 2023 · 1 post · 0 votes
Is an FHA mortgage lender permitted to search outside of the 7-year consumer reporting bureau process and ultimately incorporate consideration of credit worthiness from a 12-year-old money judgement? It is public record, is it not?
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
2y
Good question. I would ask a lender. Probably they can.
You might also check your credit reports from all 3 companies. You might also check with credit repair specialist to see what they can find or if they can get rid of it if it is still valid.
You might also check to see how long judgments stay valid. In my area I think it is 10 years, but can also be renewed, so probably depends on how much it is and where it came from. If it is $1000 in credit card debt, probably goes away at some point. If it is small, work on paying it off....that's probably the right thing to do anyway.
If it is $1mil civil judgement for wrongful death from an active and proactive family, maybe that never goes away and no one will want to take that on to give you a new loan with that obligation. Then you have to figure out another way to make it happen. Maybe save a huge down payment and find someone who doesn't care to owner finance you.
Good luck and best wishes. Keep up the fight if it is an issue. Don't give up.