4155.1 4.C.2.e
Paying off Collections and Judgments:
FHA does not require that collection accounts be paid off as a condition of mortgage approval. However, court-ordered judgments must be paid off before the mortgage loan is eligible for FHA insurance endorsement.


Exception: An exception on a court-ordered judgment may be made if the borrower:


• has an agreement with the creditor to make regular and timely payments, and
• has provided documentation indicating that payments have been made according to the agreement.

 

 

Happy Selling!
Justin Perry
Sr. Underwriter
Gateway Mortgage Group
1255
W. 15th Street| Ste. 540| Plano, TX 75075
972-908-3390 ext. 125| 918-392-8349 eFax

2/05/2010
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