Loan not my responsibility. Can divorce decree be used for proof when refinancing my home loan?

[Anonymous]

I got divorced about a year ago. When I was married, we took out a loan in my name only to buy some land. According to the divorce decree, he was awarded ownership of the land and the title is in his name. He has been making the payments, but the loan is in my name. There is still owed about $68,000 and payments are about $525/ month. So this loan payment is not my responsibility. Of course, there is nothing I can do to get it off my credit reports. And as long as he pays it on time, it may ultimately help my credit score. But in the meantime, can I prove it's not really my loan and use that info to help refi my house loan? (See more info in my "Can I use part time job" post). Also, my ex will owe me $17,000 in 4 years, also spelled out in the decree. Does this count for anything? Thanks for any help.

[WhirledPeasPlease]

I split this post off on its own because I thinkt that's what you were trying to do.  If you want to start a new thread go back to 'message listing' and type a new message.  Please let us know if you have any questions.

[BrianB_The_Loan_Professor]

In the eyes of the original lender you signed on the dotted line you should have him refinance it into his name and not be associated with it

Good Luck

brian

Message Edited by BrianB_The_Loan_Professor on 12-01-2008 08:49 AM

[ShanetheMortgageMan]

It can be excluded from the debt to income ratio.  Just need to follow the below guidelines. 

If the applicant is listed as the borrower on a debt which includes mortgage debts that have been assumed by another or the applicant is a guarantor or co-signer for another person or a court order has been issued for another party to make the payment on the borrower’s debt, the file must contain the following:

• Provide the name of the owner of the property, real or personal; and
 
• Who currently makes the debt payments; and
 
• Provide a payment history, minimum 12 consecutive months, of the contingent debt; and
 
• Provide a copy of the documents transferring the property, including but not limited to a warranty deed, an
• assumption agreement, divorce decree or property settlement, etc.

If the owner (of the property) has made timely payments for the past 12 months, the debt will not be included in the applicant’s qualifying ratio. Otherwise, you must include the payment in the borrower’s monthly debt ratio.