If you’re in the middle of a lawsuit and want to buy a home, you may be wondering “can I get a mortgage with a civil lawsuit pending?”

A civil lawsuit may result if you break your lease and are evicted. If this series of events occurs, this can be quite worrisome, particularly if you lose the case. This could interfere with long term processes, particularly with housing loans.

If you are dealing with a pending civil lawsuit and you want to know if you can get a mortgage, you have come to the right place. We will answer that question for you in this article.

Can I Get A Mortgage With A Civil Lawsuit Pending?

It is possible to get a mortgage with a civil suit pending, however, there is a risk that you will not be approved by home loan lenders.

Typically, home lenders first check on your financial status to ensure you can make your payments on time. And, generally, lenders see the financial commitment of lawsuits as a credible risk.

Additionally, if the lawsuit is due to you breaking a past financial agreement, you could be classified as a high-risk borrower. And since lenders want to reduce their risk as much as possible, that could cause some issues for you when it comes to getting a mortgage.

More Information on Applying for a Mortgage with a Civil Suit Pending

If you are able to demonstrate financial capabilities to loan lenders this may help your case.

When applying for a mortgage loan, you are required to fill out the Uniform Residential Loan Application or also known as the Form 1003. In this form, you are required to provide your current annual salary, as well as your estimated monthly debts. 

On its third and fourth page, you are required to make certain declarations. In the said pages of the forms, you are required to honestly state if you have suffered bankruptcy or foreclosure in the last 7 years. 

You must also admit if you are a party to a lawsuit. If you answer that you are, you must state whether you are the plaintiff or the defendant on the fifth page of the Form 1003. 

Factors that Decrease Your Likelihood of Getting a Mortgage

On the other hand, your chances may be slim if you lose your civil suit case. This would convey that you are likely a high risk borrower.

And, it also means you may have to pay an additional fee for the civil lawsuit case, which will hurt your financial situation. If you are involved in the party that is being sued your penalty will be greater. 

Final Words on Getting a Mortgage with a Civil Suit Pending

So when it comes to the question “can I get a mortgage with a civil lawsuit pending”, the answer is yes. It is still possible for your mortgage lender to lend you even with a pending civil lawsuit. If you have a clean financial history, then your chances of getting a mortgage is higher despite your current status.

They may dig deeper and ask you questions about the case you are involved in. But if your explanation is satisfactory, then they may approve you for a mortgage. 

We hope that this information on house loans and pending civil suits was clear and helpful.

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