Help! Can small claims hurt my real-estate closing?

[kayjay]

I live in Colorado. The lady that bought our house is taking us to small claims for $500. I am pretty sure I will win as I have all the right evidence and she is way wrong on this. However......

I am buying another house now and can't afford that loan to get screwed up. Here are some questions: - any advice would be so helpful.

1. Does this small claims business go on my credit?
2. What do mortgage companies think if during our closing I am expecting a court date? i.e. will they cancel my loan?
3. Should I pay the $500 just to avoid trouble?
4. What types of permanent records will be kept and how can they affect me.

Any advice?

(I posted this under contract questions ----I really would like advice there too!!! If there is any risk I might lose - maybe I should settle it after all!?)

 

[HomeGuru]

You have written a lot of information that is not needed. What is the cause of action?

 

[JETX]

My $0.02 worth....

Q1) "Does this small claims business go on my credit?"
A1) This is up to you. If the Plaintiff gets a judgment against you (making you now the 'judgment debtor'), it is possible that they can post the judgment to your credit history, but unlikely. Two of the three CRA's only accept reports from their subscribers and if she isn't one, she can't report to them. So, as you can see, it would be unliklely for anything to show up against you. Especially if yoy paid the judgment if awarded.

Q2) "What do mortgage companies think if during our closing I am expecting a court date?"
A2) Probably nothing at all. But, unless you tell them, how will they know??? They don't have little spies sitting in all the small claims courts reporting anyone that is filed against.

Q3) "i.e. will they cancel my loan?"
A3) I can't imagine ANY mortgage company turning down a person who passes the credit limits solely due to a potential $500 judgment.

Q4) "Should I pay the $500 just to avoid trouble?"
A4) Only if you feel that it is owed. I wouldn't pay it out of ANY concern for the potential mortgage.

Q5) "What types of permanent records will be kept and how can they affect me."
A5) There will be a permanent court record of the case. No one knows how it will affect you. If you are applying for director of the FBI and 'they' find out that you haven't paid a $500 judgment, you might not get the job. If you work as a secretary in a small business, they will probably never know about it unless you tell them.