A judgment is a ruling by a court that you owe someone a certain amount of money. The most common way you would end up with a judgment on your credit report is for one of your creditors to sue you to collect on an account you have not paid. A creditor may choose to take you to court instead of sending your account to a collection agency or they might sue you after other attempts at collection have not gotten the account paid.

Generally speaking once the creditor has a judgment against you, they have the right to have your property seized to satisfy the debt. What property they can seize and the process by which they can seize it depend on the laws of the state you live in. For that reason, judgments usually must be paid in order to get a home loan funded.

Judgments for child support arrearage can complicate a loan approval. These judgments happen when you fail to pay court ordered child support. Many individuals who have judgments for child support arrearage feel they are current on their child support because they are paying every month with the money withdrawn from their paycheck. As with most judgments these judgments are not completely satisfied until paid off. Monthly payments are payments toward satisfying the judgment but are not payment in full. Some lenders will treat these judgments the same as any other judgments and require them to be paid in full in order to fund a loan.

Whether you have judgments on your credit report for unpaid bills or for child support, your personalized program will take this into account. In many cases the program will include getting competent legal advice as to how to best handle the legal matters. Once you have taken all of the necessary legal steps the team at CarePlus Financial will help to resolve the financial impact the judgment(s) will have on your ability to qualify for a home loan.

If you feel you can benefit from our guidance in addressing the judgments on your credit report, call 866-554-9906 or click here.