help with loe

[dabolts_619]

Underwriter wants loe on a couple late car payments from 2 years ago the loan was in my name but car was my sisters should I say that? Will they think i'm full of it? Anybody have similar experience?

[JM-AM]

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@dabolts_619 wrote:
Underwriter wants loe on a couple late car payments from 2 years ago the loan was in my name but car was my sisters should I say that? Will they think i'm full of it? Anybody have similar experience?

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They hear all stories it will not matter was your sisters, you will still have to give explanation as to why it was late since it is on your credit profile. Saying was your sisters car would more then likely not get an approval. Just be honest to the best of your ability and say you overlooked the payment or something in that nature.

[Lel]

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@dabolts_619 wrote:
Underwriter wants loe on a couple late car payments from 2 years ago the loan was in my name but car was my sisters should I say that? Will they think i'm full of it? Anybody have similar experience?

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Was your sister on the loan as well, or just you?

[dabolts_619]

It was just me

[dabolts_619]

But I didn't over look it it was my sister payment she had just got her car repo and I was trying to help

[Lel]

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@dabolts_619 wrote:
It was just me

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So here's the problems as I see them.

First, since you're the only one on the car loan, then you are solely responsible for making sure that payments are made on time.  It would hard to blame the late payments on someone that has no contractual obligation to pay the loan.

Second, depending on the laws in your state, this auto transaction may have been illegal.  To finance a car that is going to be used by another person is called a straw deal, and it is my understanding that in many states this sort of transaction is specifically prohibited.  If you make the claim that it's your sister's car and that you're not responsible for its payments, insurance, and upkeep, then you would be admitting to the underwriter that you knowingly entered into a straw transaction.  I don't know if that would necessarily be a bad thing for your mortgage approval, but I would think that it could be a red flag.

[dabolts_619]

Wow thanks for the help. But I think i'm more confused on what to do now. I don't want to lie but it looks like my best option