Overdue child support and applying for a mortgage

On behalf of Stange Law Firm, PC posted in Child Support on Friday, July 26, 2019.

Illinois parents who have to pay child support should know that this obligation is considered a debt when they try to qualify for a home loan. If they are delinquent in paying child support or have a child support arrearage, it can be considered a negative credit event and impair their chances of being approved for a mortgage. However, it is not entirely impossible for people who owe overdue child support payments to qualify for a mortgage.

Individuals who want to obtain a mortgage should review their credit report to verify what is being reported and to determine if their FICO score is good enough to meet the standards established by their lender. They should also use a home affordability calculator to determine if they will be able to handle a mortgage while having to pay current debts as well as overdue child support payments.

In July 2017, the three main credit reporting agencies altered how they report certain liens, including the liens related to overdue child support. People with past-due child support should make sure they review their credit report closely as their arrearage may not be listed or have an impact on their credit score.

People who have a credit score that is sufficient enough for them to qualify for a conventional loan will not be automatically disqualified if they are making payments on overdue child support. They are required to report both the current and past-due child support payments when detailing their debts for the mortgage application.

A family law attorney may assist parents with resolving disputes regarding child support payments. Clients may be advised of which legal avenues to pursue to obtain delinquent payments, and the attorney may request child support enforcement measures on behalf of parents.

Related Posts

What Are Common Prenup Myths?

Prenuptial agreements are made before a couple gets married, and they are then enforceable once the couple is married. Many people have misconceptions about prenuptial

Read More