I am being sued for copyright infringement. I am settling for $2500.00 but not finalized yet. I have retained an attorney who is handling the settlement paperwork. I Received conditional approval from mortgage broker a couple days ago but am waiting for final underwriter review. Will this lawsuit blow my chance at receiving this final underwriter approval. I am afraid to ask my mortgage broker, hoping this pending lawuit is somehow overlooked. THANK YOU TO ANYONE WHO OFFERS ANY ANSWER !!!!
2007-10-27 06:53:23 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I don't think so. For there to be any public record of the lawsuit, the court would have had to issue a judgment against you. If you settle out of court, there's no judgment, therefore, no public record. Even if there is a judgment, you pay it, it's gone and should be of no concern to the lender. Lot's of people get sued for anything from dog bites to trip and fall accidents. Those kind of things don't affect your credit rating or ability to borrow money unless the unpaid judgments against you present a picture of inability to pay your obligations.
2007-10-28 15:12:34 · answer #1 · answered by ? 3 · 0⤊ 0⤋
The broker doesn't have any say in loan approval; that's entirely up to the lender.
Assuming that the lender has all of the information on the suit they will factor that into the approval process. They (specifically the underwriter) will likely want some sort of proof on the status of the settlement since a judgment against you could put the property at risk with a claim superior to theirs.
If you have hidden this from the lender there's a good chance that they will discover it during their review. If that's the case, you can pretty much expect the loan to be denied on the basis of incomplete disclosure. Lenders don't like surprises, especially when the facts indicate that the applicant was well aware of the information and withheld it deliberately.
2007-10-27 14:42:15 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I can't imagine the mortgage company would even find out before escrow closes. If you tell your broker then he'll have to tell the lender so I'd just keep my mouth shut and move forward. Honestly close escrow first then settle.
2007-10-27 22:56:31 · answer #3 · answered by coolmommy 4 · 0⤊ 1⤋
no it shouldn't! because it's up to the judge if your gonna be sued! more then likely he'll say, don't do this again.
2007-10-27 14:02:01 · answer #4 · answered by ? 6 · 0⤊ 2⤋