There is a difference being able to prove it and winning the suit AND there is a difference in getting a judgement and being able to collect on it.The importance of understanding the above differences can't be over stated.

But getting the loan will not be as dependent on your personal financial situation as would be the case for a conventional loan - other than whatever minimum credit score the lender may require; as well as, no recent bankruptcy, collections or judgements.

But take it with your own judgements as seller numbers are often optimistic. 

Pull a copy of the foreclosure judgement and assure the 2nd mortgate was properly served and named as a defendant in the judgment award.

In Oregon they are required to report any judgement or court ruling against them to the state licensing department - that said, not all do and until someone brings it to their attention nothing is done.

And what would you get as a judgement? 

In terms of impacting your credit score, I'd be more concerned about late pays, charging all credit lines to the limit (overutilization of debt), and obvious stuff like judgements and active collections.

If she does not pay in the final month then you file for judgement immediately. 

I have found through experience that lawsuits generally only pay attorneys and that collecting on judgements is hit and miss. 

Unless you know a few people that need money from time to time and you trust their judgement and credit to lend to them.I still borrow private money from time to time.