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[Anonymous]

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[RobertEG]

Creditors are very reluctant, when they have two parties to pursue should a debt become delinquent, to voluntarily reduce that to only only party.

You will most likely need to refinance, thus paying closing out the joint account.

[Anonymous]

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[Anonymous]

Lenders (both auto and home) have a contractual agreement with the both of you - A divorce has no impact on the terms of the agreement.  You can always ask to be removed from the agreement but it is highly unlikely that a lender will do this as doing so will remove an avenue of getting paid on the loan.  In both auto and home cases, you will need to pursue refinancing in order to get the loans on one person.  Be very careful in how you split your assets as only the credit worthiness of the applying individual will be taken into account when refinancing.  Based on what you shared, your (ex)wife needed you to co-sign to obtain an advantageous interest rate.  She may not get the same rate when she refinances the loan...hence, her monthly car payments will go up...which of course leads to some discord.  And this is assuming that she gets approved at any rate.  A $50K loan for someone making $20 an hour might be too risky for some lenders.

The same scenario applies to the home loan - this time it is your credit worthiness that will be assessed when determining the interest rate.

[Strogen]

From what I have seen in the past 50K is too much for someone making 41K a year.  If she does get refinanced it sure wont be at 0%. 

I make about the same and when shopping for cars my limit was ~30K, anything after that and the down payment grew significantly. That with a 710 score and a perfect credit file with no baddies and 1% util with $500 a month rent. Of course, I got a car for 14K so I could actually see the light at the end of the debt tunnel. 

Now the real question is, what nurse drives a 50K truck?  Usually normal people dont buy trucks for that amount unless they actually use them for their jobs. I would consider selling it. 

[takeshi74]

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@Anonymous wrote:

Will any of that even make a difference?

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Not from a scoring perspective.  Where your scores end up all depends on how the factors add up for the scoring model being used to assess your credit.  It sounds like you're losing an auto loan but gaining a mortgage.  However, the mortgage will reduce your AAoA and you'll incur a hard pull.  Overall, the mortgage should be beneficial but it's difficult to tell you that you'll gain/lose X points.  Your overall financial health and dealing with the divorce and its fallout need to take precendence over worrying about scores.

Both the house and truck will have to be refinanced.

[Anonymous]

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@takeshi74 wrote:

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@Anonymous wrote:

Will any of that even make a difference?

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Not from a scoring perspective.  Where your scores end up all depends on how the factors add up for the scoring model being used to assess your credit.  It sounds like you're losing an auto loan but gaining a mortgage.  However, the mortgage will reduce your AAoA and you'll incur a hard pull.  Overall, the mortgage should be beneficial but it's difficult to tell you that you'll gain/lose X points.  Your overall financial health and dealing with the divorce and its fallout need to take precendence over worrying about scores.

Both the house and truck will have to be refinanced.

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Amen to this!

Don't get into a situation where your financial health will be placed at tremendous risk.  If she cannot get approval for refinancing the truck AND you do not want it...then sell it and hope you at least come out even.  Don't take on anymore debt than you have to because she cannot.