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CAN JUDGMENTS BE DELETED OFF YOUR CREDIT REPORT
CAN JUDGMENTS BE DELETED OFF YOUR CREDIT REPORT?
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Yes, credit report judgments can be removed, but they are on a case-by-case basis. Below are steps to help you. However, if the judgment is valid and you get it removed from your credit report, it will be discovered when you apply for a mortgage loan. Judgments are public records. Lenders will run a tri-merger credit report when you apply for a mortgage. Initially, lenders will go off the credit tradelines and other data that report on the tri-merger credit report. However, as the loan application proceeds through the mortgage process, mortgage underwriters will order a third-party public records report on all borrowers. This means public records that do not report on credit reports will be discovered with the public records background check. A public records discovery of a judgment must be addressed before the mortgage process proceeds.
Check the Accuracy of the Judgment
Firstly, look for mistakes in your credit records regarding judgments. Examples include wrong amounts, dates, or whether they should no longer be included in your report. If any inaccuracies are found, these errors can be disputed with bureaus, and if successful, this might lead to the removal of the judgment.
Dispute with Credit Bureaus
When judgment is incorrect or does not belong to you, you file a complaint against that particular item at all three major national consumer reporting agencies, Experian, TransUnion, and Equifax, responsible for keeping records about an individual’s borrowing history. The agency will conduct investigations into disputed items, during which they must verify everything within one month, so failure on their part would mean always deleting such information from your record.
Negotiate a Settlement
If it turns out there was indeed a valid judgment against you, then try negotiating with creditors to settle the debts owed by coming up with some agreed payment plan over a certain period, after which you may request filling out a satisfaction of judgment form through the court clerk’s office, followed by notifying relevant bureaus update reports showing either satisfaction or total deletion thereof depending on circumstances having been met.
Vacated Judgments
Whenever a court overturns its decision regarding any case, including those related to debt collections, known as vacating judgment orders, forward copies reflecting this new development alongside a cover letter stating reasons why I should remove such details from my file straight away, just like they never existed before, thus leading towards their eventual erasing completely.
Credit Repair Companies
Though they cannot promise a 100% success rate in getting rid of legal judgments passed against someone, their assistance might still prove critical, especially where dispute resolution becomes tricky. Hence, it is advisable to seek help from reputable firms who abide by CROA rules throughout all interactions between parties involved at different stages during the entire process.
Important Note:
In 2017, credit reporting agencies stopped including judgments on credit reports due to changes in federal law. This means that if a judgment appears on your report, it is likely because the creditor or credit bureau made an error or used older reporting methods.
Impact on Mortgage Qualification
Removing a judgment from your credit file may improve your chances of qualifying for a mortgage. This will raise your scores, reducing the lender’s perception of your riskiness when lending money. However, if the judgment that has been deleted is still valid, then it will get discovered when the mortgage underwriter does a national third-party public records background check. As we covered earlier, a deleted public record such as a judgment will get discovered by mortgage lenders and needs to get addressed before the mortgage loan process continues.
It is always best to consult with professionals like attorneys specialized in finance matters or certified credit counselors before taking action. They can provide guidance tailored to individual circumstances, thus ensuring a positive outcome.