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Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I was pre-approved for an FHA home loan. I met with the loan

Resolved Question:

I was pre-approved for an FHA home loan. I met with the loan officer and gave him my W-2's, my bank account balences etc. I received request for additional info from the bank prior to them making a crdit decision, a conditions addendium due to a judgement for an olod credit card for 1570.00 filed by Midland Credit Mgmt. (a collections agency).
This judgement was served in 2006. The bank is asking for proof of payment (which I never did because I thought it was taken care of by my attorney) or pay the judgemnet at closing, which I don't know if I could afford it.
They also want a signed letter of explanation from myself for inquiries by Judgemnent MCM as listed on the credit report stsing if new account was opened.
I'm not sure what the last statement means nor what options I have cou;d you help. I am scheduled to close on the house in 45 days or so.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
you need to contact MCM, to actually get the status of the debt, it may have been paid off several years ago, and they did not file a satisfaction, if they still insist you owe the mooney ask them for a payment plan to pay it, or some other type of agreement so you can close. If they do not allow that, the closing could occur but $1570 + extra money will be held at escrow to pay if off.
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