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What Does Being Judgment Proof Mean To Get Mortgage Approval
What does being judgment proof mean? How can you qualify for a mortgage with an outstanding judgment? Can you get approved for a mortgage if you are judgment proof? How can you get rid of a judgment.
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What is the meaning of being judgment-proof?
Being declared judgment proof refers to a person who has neither income nor possessions that creditors can legally take away to repay debts. Typically, this concept applies to people with low earnings, no assets, or income streams protected from collection attempts (such as Social Security).
Can you qualify for a mortgage with an outstanding judgment?
- It is difficult to qualify for a mortgage while there’s still an unpaid judgment against you.
- Most lenders would need that judgment satisfied or settled before approving any loan application.
Are you able to get approved for a mortgage if judgment proof?
- Since being judgment-proof does not excuse one from paying what they owe, a mortgage is unlikely to be approved when there is still an unsettled judgment.
How do you get rid of judgments? Here are some ways on how to remove judgments:
- Paying it off.
- Negotiating a settlement.
- I am filing for bankruptcy (in certain cases).
- They were challenging the ruling if mistakes were made.
Consult your attorney or financial adviser first to know which path suits you best.