Can a judgment stop you from getting approved for a home loan?

Answer 1

Yes, having a judgment would definitely prevent you from getting approved. "Mortgage" documents are, in reality, a lien upon the property which secures the loan. The "Note" is the IOU for the money borrowed. A mortgage is supposed to be the only lien placed against the property. It allows the lender to call the note due and take possession of the property in the event of default by means of foreclosure. Since an active judgment would allow the plaintiff to place a lien upon any real property, no mortgage lender would allow their collateral to be jeopardized. Paying a judgment is also not the end of this issue. For any legal item appearing in the "public records" portion of your credit report, there must be a disposition. For a judgment, the proper disposition is a "Satisfaction of Judgment" or an "Order to Vacate Judgment" (dismissal). This is a legal document which must be obtained at the same jurisdiction as the original judgment. It also should be "recorded" at the same courthouse. If this item is showing up on your credit report, you can also follow up by sending a certified copy of the disposition to the credit bureaus. That way, this matter won't continue to haunt you as an unattended issue in the future.