How Long After Judgment Can I Refinance?

Refinancing a home after a judgment can be tricky.

A Minimum of 12 Months

As of 2009, once a judgment is removed, the lender will require a minimum of 12 months of good payment history as well as the consumer having no additional derogatory items on her credit for a minimum of 12 months.

When Finances Are Stable

According to experts at Credit.com negative marks on your credit might not only prevent your refinance, but could cost you more money in the long run than you would spend if you didn't refinance at all. It's best to wait until your finances and credit are stable and have been for at least 24 months.

Bottom Line

As of 2009, the optimum time to wait to refinance after a cleared judgment would be approximately 24 months, since bad marks on your credit could ultimately cost more than an earlier refinance would save.

References

• Home Loan Info Tips: Bad Credit Refinance
• Mortgage Loan Place: Questions and Answers
• Bills.com: Judgment Garnishment
• Credit.com: Mortgage Reginancing Guidelines