Can i get a home loan with these circumstances regarding a lawsuit?

One of the disclosure questions on the residential uniform credit application is "Are you a party to a lawsuit?". You must answer this correctly, and more than likely your lender will want a letter of explanation.. it's not a deal killer, but you must answer honestly.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Great answers below. Yes, it must be reported to the lender. Yes, it could throw a monkey wrench into things and you may have to provide documentation and jump through some hoops. No, it shouldn't be an automatic loan-killer. I would also allow for a little extra time for this loan to be underwritten and closed versus a loan without pending litigation because someone above the underwriter may have to sign off on it.Best of luck with the purchase!

That is good advice. It's always best to tell everything up front. I wish you well!Paul

You should report it. However, if you have over $7,000 in liquid assets, over any down payment, if this is a purchase, the lender may allow you to proceed, perhaps by putting about $10,000 in a reserve escrow account, to cover if you lose, including expenses.

The answers below are correct - you need to answer the questions correctly -- or you could later be accused of mortgage fraud - and that could be very costly, both financially and regarding the criminal record it would create.Talk to local, licensed mortgage professional to find out what their corporate policy is on handling issues such as this.

The answer is yes you have to report it. It may not be an automatic deal killer - it depends on the specific situation. The concern the lender will have is how would you losing the law suit affect your ability to pay back the loan and is there the potential for a law suit loss to allow an additional lien to be added to the house you'd be purchasing. The best thing to do is to sit down with a local lender. I would start with your attorney in regards to a referral. Good Luck!!!

Hi, definitely have to disclose and as mentioned not a deal killer. Be upfront and a local mortgage broker should be able to work thru it with you.

Chuck - I would encourage you to approach this very positively and act as if you will be approved for the loan. You must be honest and disclose everything to your lender - that's a given. However - that doesn't mean you are dead on arrival. Best of Luck - Andrew