FLORIDA MORTGAGE APPROVALS WITH JUDGEMENTS
A Florida judgement is a painful court order to pay a debt, and can arise from a Florida lawsuit, a divorce, business dispute or an array of other bad credit issues. A Florida Judgments is public record. They will appear on your personal credit report and can wreak your credit scores. They can also hurt your ability to get a Florida Mortgage Approval if you don’t take the proper steps.
Then the Judgement needs to be paid off at or before closing of the new Florida Mortgage.
The mortgage applicant will need to provide a copy of the written agreement with at least (6) six months of timely payments made prior to the official Florida Mortgage loan approval.
As an exception to the rule, the consumer rather than having to pay off the Florida judgement in full can agree with the creditor to make timely and regular payments for a full 6 months. The consumer will need to provide a copy of the written agreement with at least six months of timely payments made prior to the official Florida Mortgage loan approval. Additionally, a consumer is unable to prepay future months’ worth of payments in lieu of the payment history. In other words, there has to be a consistent 6-month payment history. Additionally, the monthly payment amount must be accounted for in the debt to income ratio, which can lower the Florida mortgage applicants purchasing power.
If you’re hoping to get a bad credit Florida Mortgage, any Florida Mortgage lender is going to review what led to the Florida judgment, more importantly, how the Florida judgment be accounted for with the new mortgage in place..
Whether buying a Florida or refinancing your Florida mortgage the judgement will be reviewed and reviewed in the same manner. The Florida mortgage lender is looking for any potential signs of a disregard for financial debts and inability to manage your current liabilities and could signify a future risk of default on the Florida Mortgage.
Garnishments And Florida Mortgage Purchasing Power
Commonly, a Florida judgement will involve wage garnishment. Florida wage garnishments are accounted for in the exact same way and affect debt to income purchasing power the way other payment liabilities such as a car loan, student loan or credit card would.
The debt-to-income ratio is a method lenders use to measure how much of your income is allocated for paying debts. The higher percentage of income that goes toward debt, the more challenging it can be to secure a Florida Mortgage. Conversely, the more income left over after paying debt obligations, the better.