topic Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application. in Mortgage Loans

Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

Anonymous — Sun, 13 Jun 2021 16:51:42 GMT

Ok, so I have great credit, my wife does too. We are conditionally approved for a loan just waiting on the Title paperwork. We have very low DTI. Problem is, I divorced in April and Remarried in May (It was a LOOOOONG Divorce Process). I never reported being married on my inital prequlification and of course there was no child support or alimony. They knew I was going to be married and they know I am now actually married. I have been ordered to pay my ex's attorneys fees, half her tax debt, and some extra cash, plus child support, Alimony starting May 1st (Not listed on my credit report). I paid her everyting in full except of course im paying her monthly child support and alimoney, which is fine because I will still qualify for the loan. Its a New Construction, been 2 weeks waiting on Title Paperwork, Will the Title Attorney have a problem with a recent divorce? There is information about my previous house being sold, which was done over a year ago and everything else is settled. Also if the title company reports they found a previous marriage and child support on court documents that wasn't previously disclosed...will the Lender Deny the loan? Will they let me still get approved if my DTI is still good. I have like 2 weeks before closing.

Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

iv — Sun, 13 Jun 2021 18:46:48 GMT

Have you provided the information on the court settlement and alimony/child support to your LO?

If not, do that ASAP.

Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

Anonymous — Sun, 13 Jun 2021 20:12:56 GMT

I thought about that but I'm concerned it will be such a "coincidence" at this point. We are almost cleared underwriting. I'm hoping and thinking IF it shows up they will just ask for documentation and run the app with the new debt on there 😬.

@iv wrote:
Have you provided the information on the court settlement and alimony/child support to your LO?

If not, do that ASAP.

Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

iv — Sun, 13 Jun 2021 20:39:38 GMT

That's ... not a good plan.

Seriously, tell your LO.

You will be signing a form 1003 as part of this process. Section VI on the 1003 is Assets and Liabilities, which explictly includes a spot for alimony and child support.

If you choose to leave that section blank (and also not mention the effect on your cash reserves of the lump-sum settlement payments), just read the line directly above where you sign the 1003 very carefully.

For the record, that line is:

"I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq."

Hoping the lender or title agency doesn't notice is not a good idea. If the change in reserves and DTI wouldn't affect your loan terms anyway, why wouldn't you tell them?

And if the change would affect your loan terms... well, that's where material misrepresentation on the 1003 rears its head. Don't go there.

Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

Anonymous — Sun, 13 Jun 2021 20:43:10 GMT

Hmmmm, ok. Ill call them tomorrow. Keep in mind, when I filled out my application there was no alimony or child support so that wasn't a lie, I just never updated them or I guess told them I was even married previously.
Thanks for the info.

Re: Will Title Attorney And Lender Cancel My Loan, Undisclosed prior marriage during application.

Anonymous — Tue, 15 Jun 2021 13:40:22 GMT

This is the kind of thing that is most likely to upset a Loan Offier, and while it may make logical sense to you that "it doesnt matter and is settled" to them, that is very much not the case.

They are calculating their risk. and all of your obligations settle or unsettled factor in.

The sooner you communicate it to them the better.