Lisa and Jim's Northern Nevada Real Estate Blog: Should Buyers Make The "Future Payment History" of Their Ex-Spouse A Part Of Their Divorce Agreement? ... Who Knew?

Should Buyers Make The "Future Payment History" of Their Ex-Spouse A Part Of Their Divorce Agreement? ... Who Knew?

Should Buyers Make The "Future Payment History" of Their Ex-Spouse A Part Of Their Divorce Agreement? ... Who Knew?

Underwriters Are Driving Me Crazy!!!!

We have a new home loan in jeopardy! 

These buyers may not be able to qualify for their new loan ... They May Not Be Able to Buy Their Home!

The problem, you ask?  The underwriting condition! 

The underwriter wants a 12 month payment history on our borrower's former home loan and her "EX HUSBAND".  They want to make sure that he is making his payments in a timely manner!  He got the house in the divorce!  He is not legally married any longer and he is the "Primary Borrower" on the loan in question!

Mr. EX wouldn't help his former wife if his life depended on it!  So ... New Loan Denied!

The loan officer explained it best.  He said, "The ex-husband wouldn't spit on her if she was on fire!"

Even though our borrower was an original "Co-Borrower", she is not entitled to a payment history because she is not the "Primary Borrower".     

So?     S - O -  L !

Can anything get more crazy?

Comment balloon 5 commentsLisa Wetzel • July 14 2009 08:06AM

Comments

If they tried to foreclose on her I bet they would change her 'borrower' position.  It's a shame, hope you get the deal done with another lender?

Posted by Lyn Sims, Schaumburg Real Estate (RE/MAX Suburban) almost 11 years ago

I had a situation years ago where the buyer, a woman was being held responsible for an ex's foreclosure after they were divorced because she was an original borrower on the loan.

I went to my congressman and they got it straightened out with the lender FHA. If it is an FHA loan you might try the same.

Posted by Norma Brandsberg (Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496) almost 11 years ago

Thanks Lyn - we are trying the FHA route but now they will need a gift letter from relatives and Tey really wanted to do it by themselves!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 11 years ago

Wow, haven't run into that situation before.  So does that mean her credit wasn't good or is her credit fine but since she has no payment history she's been denied?  Definitely something to think about if I work with divorcees in the future.

Chanda panda

Posted by Chanda Barrick, in referral (Keller Williams Indy Metro Northeast) almost 11 years ago

I believe she's still a co-borrower on the old loan - even with he court decree - so they want to make sure the EX Hubby is making the paymentts so she won't be tapped to do so!  Or something like that!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) almost 11 years ago

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