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How can this work?

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vader77
Established Member

How can this work?

So, I have a bit of a screwed up situtation.  I have good credit, High 670's/680's across the board.   No lates in over 6 years.  No judgments, no liens, etc. 1 Auto loan that will be paid off in February 16".  It is all prettty good. Goo credit cards with high(ish, 15K, 10K, 5K limits) Here's the rub,  I had a bad mortgage loan that was discharged on my Wifes Bankruptcy.  It does not appear on my credit at all.  Not the loan, and not her Bankruptcy.  I'm nearly debt fee and have been saving for a down payment and will be good to go in that department  I want to buy a home.  When I apply, just me, not the wife, hows that going to work.  My problem is I have no rent history to show and obviously no mortgage.  I feel like they are going to ask what I've been doing for the last 5 years?  Right?

Message 1 of 8
7 REPLIES 7
StartingOver10
Moderator Emerita

Re: How can this work?


@vader77 wrote:

So, I have a bit of a screwed up situtation.  I have good credit, High 670's/680's across the board.   No lates in over 6 years.  No judgments, no liens, etc. 1 Auto loan that will be paid off in February 16".  It is all prettty good. Goo credit cards with high(ish, 15K, 10K, 5K limits) Here's the rub,  I had a bad mortgage loan that was discharged on my Wifes Bankruptcy.  It does not appear on my credit at all.  Not the loan, and not her Bankruptcy.  I'm nearly debt fee and have been saving for a down payment and will be good to go in that department  I want to buy a home.  When I apply, just me, not the wife, hows that going to work.  My problem is I have no rent history to show and obviously no mortgage.  I feel like they are going to ask what I've been doing for the last 5 years?  Right?


^^^I am not exactly sure what you mean when you say you had a bad mortgage loan. Was the note and mortgage ONLY in your wife's name or were you also on the mortgage?

 

Did ONLY your wife file Bk?  That is how I read your post.

 

Are you in a community property state?

 

it is not unusual now for one spouse to have had a mortgage and now the other spouse qualifies for a mortgage - particularly if the first mortgage was f/c'ed upon or dischasrged in Bk. What is the status of the property in the public records?

Message 2 of 8
vader77
Established Member

Re: How can this work?

Sorry, should have been more clear.  The mortgage was in both our names.  The Bankruptcy was only in her name.  I'll confirm what the status of the property is in the public record.  That is the root of my question though.  As there is no record of the mortgage or bankruptcy on my credit report, I'm concerned that if I apply for a new mortgage this will come up.  I know it will, I'm just trying to figure out how.  Does the underwriting process search the public record? A title search is only for the home you are purchasing correct? 

Message 3 of 8
ezdriver
Senior Contributor

Re: How can this work?

Something does not make sense. If the mortgage was in both spouses names and one spouse had it discharged through bankruptcy, the mortgage remains on the other spouse's name. Could it be that the OP's bane may have been on the deed only and note the mortgage note? Clarification is needed from the OP.

Message 4 of 8
Anonymous
Not applicable

Re: How can this work?


@ezdriver wrote:

Something does not make sense. If the mortgage was in both spouses names and one spouse had it discharged through bankruptcy, the mortgage remains on the other spouse's name. Could it be that the OP's bane may have been on the deed only and note the mortgage note? Clarification is needed from the OP.


+1

 

OP - the title company will do a public records search, if the UW doesn't do it first.  But how did the loan appear on your CR prior to your wife filing BK? Has it ever appeared on your CR? Something is definitely missing from this picture. 

Message 5 of 8
mynameainttracy
Established Contributor

Re: How can this work?

It could be that the loan was in her name but the deed was in both. My DH and I both went through BK and FC and none of the accounts were ever in his name so it didn't show up on his credit report.

 

When we eventually bought again I did have to disclose the information but to this day nothing about the mortgage accounts have ever been on his credit report. However, the records search for the deed and title clearly show both our names.

Message 6 of 8
Anonymous
Not applicable

Re: How can this work?

Vader is asking-

 

"My problem is I have no rent history to show and obviously no mortgage.  I feel like they are going to ask what I've been doing for the last 5 years?  Right?"

 

Right.

Message 7 of 8
StartingOver10
Moderator Emerita

Re: How can this work?

vader77, if you and your wife had the mortgage in both names, it will show in the public records.  Since your wife has been successfully discharged from a Bk she is no longer responsible for the mortgage debt (personally) and she can get a new mortgage 2 years after discharge as the new rules allow the u/w to use the Bk discharge date.

 

However, you are still responsible for the debt if you did not Bk the liability or pay it.

 

The lenders have your name & SS run through the title co during the approval process so all of your public records will show - including prior property ownership and mortgages. If you fail to disclose, it is mortgage fraud and your application will be terminated. There may be other repercussions for attempting mortgage fraud, but I don't know what they are ....but don't even go there.

Message 8 of 8
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