Question about divorce and mortalgage

[kentucky_golfer]

My wife and I are in the process of getting a divorce. I am keeping the house and the mortgage loan is in my name only. She is wanting to buy a home herself in the near future. My question is this: both of our vehicle loans our in both our names. Per the terms of the divorce she is keeping her vehicle and I'm keeping mine. I am too upside down on my truck at the moment and thus unable to refinance or trade it, in order to get her name off the loan. When she goes to apply for a mortgage loan, her credit report will show her on the loans for 2 vehicles (as does mine).

Will this be a problem for her as far as debt to income ratio, or will the bank accept the divorce decree that states I'm responsible for one auto loan payment and she's responsible for hers, and simply not count my auto loan payment against her debt to income ratio?

[iced]

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@kentucky_golfer wrote:
My wife and I are in the process of getting a divorce. I am keeping the house and the mortgage loan is in my name only. She is wanting to buy a home herself in the near future. My question is this: both of our vehicle loans our in both our names. Per the terms of the divorce she is keeping her vehicle and I'm keeping mine. I am too upside down on my truck at the moment and thus unable to refinance or trade it, in order to get her name off the loan. When she goes to apply for a mortgage loan, her credit report will show her on the loans for 2 vehicles (as does mine).

Will this be a problem for her as far as debt to income ratio, or will the bank accept the divorce decree that states I'm responsible for one auto loan payment and she's responsible for hers, and simply not count my auto loan payment against her debt to income ratio?

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If it's on her report, she can expect the bank to factor it in. She may be able to get them to remove it from consideration with the documents you listed and an explanation to their satisfaction, but nothing's guaranteed. After all, if your loan goes sideways, the banks can still go after her for the money, decree or not.

[VALoanMaster]

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@kentucky_golfer wrote:
My wife and I are in the process of getting a divorce. I am keeping the house and the mortgage loan is in my name only. She is wanting to buy a home herself in the near future. My question is this: both of our vehicle loans our in both our names. Per the terms of the divorce she is keeping her vehicle and I'm keeping mine. I am too upside down on my truck at the moment and thus unable to refinance or trade it, in order to get her name off the loan. When she goes to apply for a mortgage loan, her credit report will show her on the loans for 2 vehicles (as does mine).

Will this be a problem for her as far as debt to income ratio, or will the bank accept the divorce decree that states I'm responsible for one auto loan payment and she's responsible for hers, and simply not count my auto loan payment against her debt to income ratio?

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Hi Kentucky_golfer,

Sorry to hear that you're going through a divorce.

Most lenders will exclude the payment as long as you have a divorce decree that shows the debt was "assigned" to the other party.

If your ex-wife has any problems, have her contact me.

Good luck.

[kc0039]

It will be counted. In order for then to 'omit' the payment from her debt to income ratios, provide the divorce decree showing that you are the one that owns that truck. Please also provide a 12 month history of cancelled checks or statements showing that you're hte one paying for it. The statements/checks must show only your name on it.