Step 5: Taking Care of Liens and Judgments
Liens and Judgments are items that have been reported to the County Recorder or the court to make sure that you pay them. They are reported on your credit report under the title of "Public Records" and bring your scores down. You may be able to buy a home without paying liens and judgments, but you will qualify for a better loan if you take care of them. If your report shows that the item was Satisfied, Paid or Released, there is nothing left to do. Otherwise, follow these instructions:
- If a lien or judgment shows up on your credit report and you've already paid it, you should have a "Lien Satisfied" or some type of official documents that shows the item was paid. Provide copies of these to the credit reporting agencies asking them to update their records. Your credit report should be corrected within 45 days.
- If you paid the item but don't have proof, you can go the County Recorders office and request this proof. There may be some waiting and some fees involved, but this is a small price to pay. Otherwise, you may end up paying the item AGAIN in the future. The Riverside County Recorder office can be reached at:2720 Gateway Dr
Riverside, CA 92507
(951) 486-7000 or 1-800-696-9144 if dialed from within Riverside County
http://riverside.asrclkrec.com/ - If you haven't paid the item, contact the private party or government agency and make arrangements to pay them. Be sure to get everything in writing so that you can clear the item with the credit reporting agencies. The easiest way to clear these items is through escrow when you buy or refinance, but you may want to clear it up beforehand to fix up your credit.
Child Support and Alimony. If your child support or alimony payments are current, it shouldn't show up on your credit report. If you owe "back-child support" or alimony, whether or not it shows up on your credit report, it MUST be brought current before you get a home loan. Like Liens and Judgments, you can also pay these off through escrow, but you may want to clear it up beforehand to get a better home loan.
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