by the way...he did see her atty yesterday, and we are waiting to see if she will accept the offer...($2000.00 down and $200.00/month).Unfortunately ,history has shown that she does seem to want to suck the blood from him.Insurance allready settled here...I primarily want to make sure that we handle this "from this point forward" with a little wise advice from someone who knows better than we...we now know to be sure and get whatever settlement IN WRITING..Thanks!
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The part of this that isn't making sense is your boyfriend's belief that his insurance carrier had settled her personal injury claim against him prior to the default judgment. Too much time has gone by for all (or maybe any) of his remedies and defenses to be available, but he needs to see an attorney for some advice before he makes any agreement to settle the judgment.
He needs to obtain the claims file from his insurance carrier (or at the very least, copies of the drafts of all payments to her and al documentation of the so-called settlement) and a copy of the judgment against him, and take them to a lawyer for review and advice.
Who was his insurance carrier at the time? Exactly when was the Judgment against him signed by a Judge?
He needs to obtain the claims file from his insurance carrier (or at the very least, copies of the drafts of all payments to her and al documentation of the so-called settlement) and a copy of the judgment against him, and take them to a lawyer for review and advice.
Who was his insurance carrier at the time? Exactly when was the Judgment against him signed by a Judge?
He "thinks" his insurance carrier was Auto Dodge. The judgement was signed in 2001.He said this woman called him to tell him she was going to sue him,and he asked her why and asked her not to.Thats all the info I have(as i am in one town, and he in another,and he is at work,trying to handle this in between his work duties.)I dont think he realized the significance of it all back 8 years ago.No excuses really(except that he didnt have anything to give her),just ignorance for the law.(which i realize is no defense,but just the simple truth here.)
I do know that he was not the cause of the wreck,and therefore was not cited any citations...he was just one of a few vehicles that hit each other due to one vehicle that didnt stop for a turn in time.He was working a "shutdown" and they were requiring 14 hour days 7 days a week...he just didnt show for the court date,so she won the judgement.I will see if he can find any record of the settlement.Again...thanks to all of you for your time and advice.
I do know that he was not the cause of the wreck,and therefore was not cited any citations...he was just one of a few vehicles that hit each other due to one vehicle that didnt stop for a turn in time.He was working a "shutdown" and they were requiring 14 hour days 7 days a week...he just didnt show for the court date,so she won the judgement.I will see if he can find any record of the settlement.Again...thanks to all of you for your time and advice.
From your original post the bottom line is the lender will not approve the mortgage loan until there is a satisfactory resolution on the judgment.
At this point the details of the accident litigation and the medical expenses and cancelled insurance are irrelevant. He is also not currently a homeowner, as he is trying to purchase the home he is currently living in.
All that matters now is that he has a $25,000 judgment debt (plus accrued interest over seven years) that he defaulted on, and the mortgage company will not budge until it is cleared up.
The quickest way to resolve this is to pay off the judgment, but that's not gonna happen anytime soon.
Negotiating a settlement will take longer, and the house he wishes to buy may be foreclosed on before then.
In the event a settlement is negotiated, the bank will expect proof from bank statements the agreed upon $2,000 down payment toward the judgment was actually paid. Once the paperwork is all in order clearing up this judgment, the bank will then consider this judgment as another debt he owes and will deduct his new debt payments from his disposable income. What this means is that if he was able to barely qualify for the loan before, he might no longer qualify for it with the additional debt.
At this point the details of the accident litigation and the medical expenses and cancelled insurance are irrelevant. He is also not currently a homeowner, as he is trying to purchase the home he is currently living in.
All that matters now is that he has a $25,000 judgment debt (plus accrued interest over seven years) that he defaulted on, and the mortgage company will not budge until it is cleared up.
The quickest way to resolve this is to pay off the judgment, but that's not gonna happen anytime soon.
Negotiating a settlement will take longer, and the house he wishes to buy may be foreclosed on before then.
In the event a settlement is negotiated, the bank will expect proof from bank statements the agreed upon $2,000 down payment toward the judgment was actually paid. Once the paperwork is all in order clearing up this judgment, the bank will then consider this judgment as another debt he owes and will deduct his new debt payments from his disposable income. What this means is that if he was able to barely qualify for the loan before, he might no longer qualify for it with the additional debt.
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from what i understand,her atty is checking with her to see if she will agree to the terms,and the lender just wants to see that he has made some payments towards the lien.This is a VA loan,and he was already sent a letter of approval from the lending company(before they found this).We are hopefull that we can just get it done and move forward...
Mortgage and VA preapprovals are based upon the assumption that all the information initially given was correct and will not change prior to closing the loan. VA has pretty strict oversight of its lenders and stringent review requirements and will not allow the lender to overlook this last minute detail. Be prepared for the lender to requalify him based upon the change in circumstances. Hopefully he will still qualify.
Given that this woman's attorney will probably let her know how much interest has already accrued on the loan and what her options are, she may not agree to a $2,000 down payment with a $200 a month payment. I would not agree to those terms. But then again she might.
Given that this woman's attorney will probably let her know how much interest has already accrued on the loan and what her options are, she may not agree to a $2,000 down payment with a $200 a month payment. I would not agree to those terms. But then again she might.
Thanks for the insight into the VA loan process...I think at this point we can only hope and pray...when it rains it pours
!!
I believe that he is asking to knock off the interest.I just cant imagine moving right now,but its looking more and more bleak...Its unimaginable to me what we will endure before this is all over...hope is not something we can afford to lose right now...
!!I believe that he is asking to knock off the interest.I just cant imagine moving right now,but its looking more and more bleak...Its unimaginable to me what we will endure before this is all over...hope is not something we can afford to lose right now...
Given your situation, not having this mortgage go through for you at this time may be a blessing in disguise.
In spite of what the realtors and mortgage companies spew about the wonderful benefits of homeownership, there are some downsides that many folks are learning the hard way these days. And just because this is a foreclosure does not make this a sure bet you will come out ahead on this deal. Unless this is over a 200K mortgage and/or high incomes are involved, the tax benefits are not as good as most people are led to believe. This when weighed against the loss of the standard deduction.
Coming to a legal agreement on paying the judgment for the sake of getting the loan and defaulting on it could cause more problems than if you just left the judgment alone for now.
Bottom line is the cost of homeownership in this case will take a big short term bite into much needed cash reserves and cash flow for medical expenses and such. So this should be taken into consideration.
In spite of what the realtors and mortgage companies spew about the wonderful benefits of homeownership, there are some downsides that many folks are learning the hard way these days. And just because this is a foreclosure does not make this a sure bet you will come out ahead on this deal. Unless this is over a 200K mortgage and/or high incomes are involved, the tax benefits are not as good as most people are led to believe. This when weighed against the loss of the standard deduction.
Coming to a legal agreement on paying the judgment for the sake of getting the loan and defaulting on it could cause more problems than if you just left the judgment alone for now.
Bottom line is the cost of homeownership in this case will take a big short term bite into much needed cash reserves and cash flow for medical expenses and such. So this should be taken into consideration.
The realistic point of view is that the judgment has first priority, as it should, and I see no way that buying a home is prudent at this time.
Personal problems are just that and not paying a lawful judgment because he claims to be supporting you means that someone else is doing without what is rightfully theirs ... this seems wrong and for the wrong reasons.
If I held the judgment I would hold his feet to the fire ... and it will be one heck of allot more than the original $25K. With post judgment statutory interest alone the debt is ~ $41,000 plus legal fees which can run another $2500. Today, it is the best investment around for the one holding the judgment.
You can get folks to tell you what you want to hear but the fact is that he has an obligation and it will eventually get paid. The other party is under no obligation to do it his way or on his terms. He had an opportunity and he chose to ignore it.
I think there is a lot more to this too because his insurance, if he actually had any, would have paid this and it would not come back later. His best bet is to not try to continue to ignore this and have you run tackle for him. It is time for him to step up to the place and take responsibility himself.
Get an attorney.
Personal problems are just that and not paying a lawful judgment because he claims to be supporting you means that someone else is doing without what is rightfully theirs ... this seems wrong and for the wrong reasons.
If I held the judgment I would hold his feet to the fire ... and it will be one heck of allot more than the original $25K. With post judgment statutory interest alone the debt is ~ $41,000 plus legal fees which can run another $2500. Today, it is the best investment around for the one holding the judgment.
You can get folks to tell you what you want to hear but the fact is that he has an obligation and it will eventually get paid. The other party is under no obligation to do it his way or on his terms. He had an opportunity and he chose to ignore it.
I think there is a lot more to this too because his insurance, if he actually had any, would have paid this and it would not come back later. His best bet is to not try to continue to ignore this and have you run tackle for him. It is time for him to step up to the place and take responsibility himself.
Get an attorney.
Truth is that he is not having me "run tackle" or anything else for him...as a matter of fact he keeps telling me to just wait to hear from the atty,and not get myself upset at what i learn online...yet members like Ronin give pretty good factual advice without passing personal judgements along,so here I am.Im not just looking for someone to tell me what i want to hear,i want to learn facts...thats all.We also are not expecting the other party to do this "his way",merely(as stated many times here)trying to get through this without any more "surprises" in our future... does anybody know,how long does a judgement like this last?
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