Can I get a home loan even if I have a court writ?

Any general questions you might have in regards to loans and finance.
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arnie
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Can I get a home loan even if I have a court writ?

Postby arnie » Mon Jul 07, 2014 7:07 am

Hello! I am here because my friends suggested me to make use of this forum. They said that this was the place to get my queries answered. So here’s my question - Can I take out a home loan despite having a court writ?

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Otto Dargan
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Re: Can I get a home loan even if I have a court writ?

Postby Otto Dargan » Mon Jul 07, 2014 9:06 am

Hello arnie and welcome to the forums.

You may be able to qualify for a home loan even if you have a court writ if you meet certain criteria such as:
  • You must not borrow more than 90% of the property value.
  • You may need to provide a good explanation to the lender if the court writ is unpaid.
It should be noted that the possibility of your loan being approved depends much on the size of your deposit.
Most banks prefer borrowers with a clean credit history. As a result, they may not approve loans for people with any type of bad credit. Few lenders may review and consider their applications on a case by case basis.

If you have a large deposit, a strong financial position, and a good mortgage broker then you may be able to get a good deal. You may be able to receive the same low interest rates as people without any adverse credit history or court writs.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

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arnie
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Re: Can I get a home loan even if I have a court writ?

Postby arnie » Mon Jul 07, 2014 12:34 pm

I’m going through a tough patch right now, and it seems like it could get worse! I could be getting a judgment very soon… Will I still be able to get a home loan? Can you also tell me how the banks look at court judgments?

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Otto Dargan
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Re: Can I get a home loan even if I have a court writ?

Postby Otto Dargan » Mon Jul 07, 2014 3:32 pm

Hi arnie,

Most prime lenders such as major banks may not lend to a person who has a judgment. However, you may be able to take out a judgment home loan from a specialist lender.

In order to qualify for the loan, you may have to meet certain requirements such as:
  • You must not borrow more than 90% of the property value.
  • You must provide a written explanation for your judgment.
  • If your judgment is yet to be paid then some lenders may only accept your application after you have made the payment.
It is no surprise that lenders do not view judgments favourably. From a lender’s point of view, a court judgment shows that:
  • The person was unable to come to a suitable agreement with the creditor without resorting to legal action.
  • Legal action has been taken on the person. This also raises the possibility that there may be other legal action going on.
If you need to know and learn more then you can talk to one of our experts about your personal situation on 1300 889 743. You can also enquire online to see if you qualify for a loan or not.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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arnie
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Re: Can I get a home loan even if I have a court writ?

Postby arnie » Tue Jul 08, 2014 1:42 pm

Thanks, Otto! You’ve made me a very hopeful man. I’ll wait a couple of weeks to see how things turn out. Hopefully, I can come up with a deal with my creditor and not get a court judgment. I’ll call you as soon as I’m sure of my situation. Have a good day :)

gleeson
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Re: Can I get a home loan even if I have a court writ?

Postby gleeson » Sat Oct 11, 2014 12:32 pm

Hi everyone!

I applied for quite a few loans some years back and I also had a court judgment four years ago. I am currently in a good financial position and I want to take out a home loan in the next few months. Can anyone tell me how long the information regarding bad credit stays on my credit file?

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Otto Dargan
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Re: Can I get a home loan even if I have a court writ?

Postby Otto Dargan » Mon Oct 13, 2014 8:09 am

Hi gleeson,

Information relating to bad credit stays on the credit file for a certain period of time after the date it was first lodged. Below is a list of the common types of bad credit records and the length of time they stay on the credit file:
  • Current debt repayment history - two years.
  • Court writs and summons - five years.
  • Enquiries - five years.
  • Defaults - five years.
  • Court judgements - five years.
  • Defaults, or clearouts - seven years.
  • Part IX agreement - seven years.
  • Bankruptcy - seven years.
It should be noted that paying a default does not remove it from your credit file. The file will simply be updated to show that the default was paid. A default may only be removed with the consent of the company that lodged the default on your file in the first place.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

gleeson
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Re: Can I get a home loan even if I have a court writ?

Postby gleeson » Mon Oct 13, 2014 1:03 pm

So it seems I need to wait one more year to significantly improve my chances of getting a home loan. If the court judgment isn’t seen on my credit file then I know I can take out a home loan with ease. If I have any more queries then I’ll check your website for answers. Goodbye.


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