Help me Understand how this affects of benefits.......

[memevertical]

Hi Everyone.....

Ok, here's the thing.

When I was married (10 months ago), we bought a house together. 2 Weeks ago, the divorce got finilized and I got the house.

Obviously I need to get her out of the Mortgage. And I will, but It's not an easy thing......anyways, here's what I want to ask.

She wants to apply for a car loan but claims that the mortgage makes it impossible for her to get a car loan.

I can prove that I am the one making payments, and I told her that Car loan companies shouldnt count the mortgage payments towards her monthly expenses, because I am the one paying, not her...... but still she claims that they dont care....

Is this all true? I would've thought that having a mortgage would benefit her, and she would benefit from the fact that I make every payment on time.

I will eventually get her out of the loan, but in the meantime, I would've never thought that this mortgage would make it impossible for her to get a car loan.....

Thanks everyone!!!

[llecs]

It's probably a DTI issue. The lender sees that she's responsible for a mortgage payment and a future car payment and can't get the math to work. The best bet is to refi the house ASAP to get that payment off her CR. They have to count the house because legally if you default on the mortgage, then so does she, regardless of any divorce decree.

[pizzadude]

If I understand correctly, you are saying that both you and your ex are in the mortgage right ? If that is true then the only way to get her off the note would be to sell or refinance the house In your name only. The bank is not a party to your divorce and I do not think that they'll take her off the note,

Unfortunately since it shows on her credit reports, it is counting towards her DTI and I don't know how to get around that. She is liable for the house just like you are until you refi the loan.

[memevertical]

So you're saying that a bank will calculate her DTI as if the entire mortgage monthly payment is on her, eventhough its a joint mortgage, as in, both of us are responsible for the monthly payment? Or even if I could facilitate her with proof that payments for the mortgage are coming from my personal account?

[pizzadude]

Yes that is correct ~ she is on the loan so it has to be factored in with her debts.

If you were to stop paying the bank would come after both you and her for payments.

[RobertEG]

Did your divorce decree include any terms, such as order of sale of the property or for refinancing under the name of only one party?

Or did the parties and the judge just ignore the disposition of the former marital property, and only award possession?

Kinda confusing.

[memevertical]

It was something called a simplified divorce...... we pretty much filled out paperwork saying I was keeping the house......we went to the courthouse, the judge asked us if we both agree with everything on the paperwork we filled out, and she granted us the divorce.

She will sign the Quit Claim Deed for the house to be under my name, and I will refinance so she's no longer responsible.........

[LS2982]

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@llecs wrote:

It's probably a DTI issue. The lender sees that she's responsible for a mortgage payment and a future car payment and can't get the math to work. The best bet is to refi the house ASAP to get that payment off her CR. They have to count the house because legally if you default on the mortgage, then so does she, regardless of any divorce decree.

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+1

[GregB]

It is a simple matter for her to prove that you are making the payments on the house. They probably would require a year or two of history where it can be shown that you are making all the payments. You will likely have to provide bank statements showing this in order for her to qualify. If you have only been making the payments for a short time, then she might not qualify.

It has only been 10 months, in my state we consider extricating yourself from a divorce to take a decade or so.

In my experience there is no way that a judge would require either spouse to refinance to get the other off the loan. Other states will be VERY different. If it isn't in the Judgement of Dissolution, there is no requirement for you to refinance and you might want to do so only if it is in your advantage. It is very normal for neither party to qualify by themselves to refinance. If you kept the house, it was included at full value in the Marital Balance Sheet so you paid a premium to keep it compared to the money that would have gone on the othe side after the house was sold or if the other spouse kept it.

[CS800]

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@llecs wrote:

It's probably a DTI issue. The lender sees that she's responsible for a mortgage payment and a future car payment and can't get the math to work. The best bet is to refi the house ASAP to get that payment off her CR. They have to count the house because legally if you default on the mortgage, then so does she, regardless of any divorce decree.

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I agree too