California Community State question

[Anonymous]

Hello All,

I  got married about 4 months ago in Puerto Vallarta Mexico and now my wife and I are looking to purchase a new home. I however, have two credit cards lenders want me to pay before we close. Since the cards themselves are already past the SOL and about 2 years from dropping off my credit I personally prefer just to let them ride off my credit instead of paying 10k since the creditors refuse to delete. My wife makes enough to qualify for the loan amount we'd like to spend anyways so I want to just run it through her name but I'm afraid of the community laws and my debt counting against her ratio or them still wanting me to pay it off first. The flip side is we havent gone to the county recorders office with a marriage license so as far as the state of california  or even the USA is concerned doesnt exsist. But at the same time we'd like to turn it in to the county recorder before the end of the year.

If were technically not married in the state of california at the beginning on the loan process does she have to disclose at the end that she got married in the mean time? Does anyone foresee any other issues that may occur? Should we just wait to turn over our marriage license to the recorder?

Thanks in advance,

-Matt

[ShanetheMortgageMan]

Since you aren't married then any of your debts from your non-legal wife wouldn't be counted against your debt ratio - but if you get married in the meantime then you would need to disclose that, and then her debts would be included against your debt ratio.  What are the details around the credit cards that lenders want you to pay?  How much is each amount and when were they from?

[Anonymous]

I owe about 6k to USAA and 3k + to BofA.  I figure even if I settle with them it will cost around 4-5k. I could pay them but they've already let the SOL pass. We got married on the beach in Puerto Vallerta (had to fly out a month in advance to do blood test in Mexico, I was paranoid every time I sneezed and swore I had swine flu for like the next month) and had our marriage certificate "legalized" in mexico and was told it would be valid and recognized world wide but would want to register it with the county recorder of the state and county of which we live. So in a sense it is legal, we just havent reported it yet and it sounds like we might be better served either a.) not reporting it until we complete the process and claim ignorance regurding it's validity in the us or b.) I might want to just book a flight to vegas, pay the $55 and redo it after we complete the loan process and have a new certificate with a date being after the close of the deal so that way no one can say she lied on application form .

[Anonymous]

bottom line is that you got married via a recognized legal process.  It having happened in a different country makes no difference.  Trying to skirt the reporting of it to avoid community property laws would be mortgage fraud.  You would have to lie on paperwork you filled out about not being married.

Good luck sorting it all out.

[ShanetheMortgageMan]

Some lenders would require you to pay those off for loan approval, but there are many more lenders who wouldn't require them to be.  

You'd have to find out here in California what makes you legally married, getting married in Mexico is not recognized in the U.S. as being a legal marriage.  We're told all sorts of BS when we're in Mexico as tourists too, don't take their word for it that the the marriage certificate is "legalized", confirm with the county clerk's office where you plan to record the marriage certificate/license.

[Anonymous]

Thanks Shane, we already followed up with the county recorders office and they said its a legal marriage as long as we have all the documents needed which I beleive we do, but they simply dont recognize it until we report it to them meaning we wouldnt have to apply for a marriage license in california we would just more or less need to report the existing mexican license to them. We were married through the westin resort which is an american entity and all the documents they provided us appear to be legitimate (if not I'd imagine they could be held liable so why would they risk it for a $75 filling fee and a few other small fees). I dont foresee any issues when reporting to the county recorder in my county we just simply have not done it yet. 

 As far as those other lenders go,  that was not mentioned to me. I will follow up with my rep for a justification as to why that was never mentioned to me. Thanks!!

As far as mickie's statement about skirting any type of system, i'm sorry you see it that way but I  dont. If it has yet to be recognized in the US than any transaction occuring in the US with an american entity  shall be governed by the laws of the land. If those laws state i'm not married in their eyes until reported to them then fine. I won't be able to take advantage of any tax breaks but it seems worth it to me to miss out on one year (unless we can close a deal by dec. 31 then I can still file jointly for the entire year). Just because I time the registration of our marriage to best suit my needs doesnt make it fraud I see it as just playing by the rules they set fourth. Besides, I didnt ask for general legal cousel, I already pay a retainer for that.

[Anonymous]

no offense meant BTW. 

You did ask for advise to whether disclosure was needed, it was not a matter of how I "see it".  That said, I came off a little harsh and apologize.

One thing to check, when you register the documents in CA, do they set your official "marriage date" as the date you file or the date of the ceremony.  I would assume the date of the ceremony.  If that is the case you could still be in the wrong.  If they set it as the date of it being filed, then you may be able to get around the issue one way or another.  Yeah, personally I would not sign off that I was a single person if I was married and knew that the marraige was legal and would be recognized.  That said, that is a judgement call and I in no way am trying to judge or accuse anyone.  I was answering a question.  You are currently married in a legal format that is recognized by the state of CA and are just lacking reporting the info to them.  Especially if they backdate to the date of marriage then there is a good chance that it would be fraudulent knowing that information and not disclosing it.    If your LO/UW know that information and then feel it is OK to file as single then going ahead is of course OK and great.  Keeping that info from LO and UW though could be problematic, especially if the loan comes under review/audit down the road for any reason (default, loan gets sold,

In any way, on the boards, we are never allowed to "approve of or condone" any action that may not be legitimate.  So, I am just saying be careful and disclose your situation to your lender and let them make the call. 

in either case, no offense meant and I wish you the best on getting it all figured out.  I'm out of this one.  

[fused]

Thread is unlocked.

Message Edited by fused on 11-05-2009 12:56 PM