Back Child Support-Mortgage Loan

[Trailmix123]

I'm closing on a house on the 11th of January ( supposidly )  and I pay child support out for my pay checks and have been doing so for the past 4 years via through the courts.  About 5 years ago I got way behind because my employer was not paying the right amount every month and that went on for 3 1/2 years. I didn't think anything of because nothing was said by anyone and, my fault, I really didn't pay attention either. I worked on commision so my checks were never normal and didn't really track it that well.  Eventually the courts got ahold of me, I paid 2500 when I went to court plus I told them to take my taxes to help get it caught up which they did. They also changed my amount to add 150.00 for the pat due balance which is fine. I have been paying just fine for 4 years. The past due support was never reported to my credit report. I paid alot back then to knock the balance down so that wouldnt happen. 

Under writter wants a copy of my full divorce decree after seeing I pay support via my pay check as he said it's an issue so he can see the stated amounts via the decree. I guess my questions is, does he just need to see that I was ordered to pay child support and that's why its coming out of my check? Will having back amount still owed hurt me even though I have been paying just fine for the last 4 years to the T with the court order? I wonder why they just now raised this issue when I sent everything to them weeks ago and stated I pay child support. 

The original decree has the amount before they added anything so I guess the underwritter is going to see I am paying more and question it. Should I send the amended court order showing the new amount as well and explain to them what happened? 

[Sadie5150]

You will need to send them a copy of the original order, showing the amount ordered originally.  Then you will also need to give them a copy of the Judgement on most recent "Motion to Order" showing the amount being paid that includes the "arrears arrangment."  That order you provide to your underwriter should match the deduction amount on your paycheck ledger.  You will also need to provide the underwriter with a letter of explanation,  stating exactly what you just posted in this forum.  Hopefully, the amount you are "currently" paying does not put your DTI ratio over the acceptable amount with said mortgage company.  Most don't like any surprises once it gets to. your final review, as they view it as a precursor to other issues that haven't been disclosed.  My sister is an underwriter for Bank of America home loans.  She said she is always willing to help a client, who is being honest and just needs a bit of a break, over anyone who deliberately tries to hide any finances.  So, definitely be honest when explaining your situation.  :0). Good luck!

[Trailmix123]

Gotcha, 

I have not tried to hide anything. I told them from the get go that chid support was taken out of my checks like a month before underwritting. I have a co signer to help with the DTI, that's all the broker said is what I needed. Had I known about having to furnish this other stuff I would of done so before underwrittng and provided an explination. I don't want them to think I am hiding anything.  Yes I have the most recent order to send them and I'll just explain to them all this...They can't expect first time buyers to know all this. I asked numerous time before under writting if I needed to send in anything else. Very frustrating....if I lose this and my earnest money I will not be a happy camper with them. 

[VALoanMaster]

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@Trailmix123 wrote:

Gotcha, 

I have not tried to hide anything. I told them from the get go that chid support was taken out of my checks like a month before underwritting. I have a co signer to help with the DTI, that's all the broker said is what I needed. Had I known about having to furnish this other stuff I would of done so before underwrittng and provided an explination. I don't want them to think I am hiding anything.  Yes I have the most recent order to send them and I'll just explain to them all this...They can't expect first time buyers to know all this. I asked numerous time before under writting if I needed to send in anything else. Very frustrating....if I lose this and my earnest money I will not be a happy camper with them. 

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Unfortunately it sounds like you're working with a bad LO. A good LO would have asked for your divorce decree & the amended order as soon as you mentioned the child support or, if you didn't mention it, they would have asked as soon as they saw the deduction on your pay stub.

The fact the you are paying the arrears will not matter. The only thing the u/w will care about is that you are paying the amount required by the courts on time every month.

[Trailmix123]

Yea, I'm starting to think the LO is lacking a bit but all around hes been good. He was able to trim closing cost and get me DPA of 6k and nake the seller pay 1k at closing. I think theres some blame on my end but again i should have been told when they saw support from my checks 4 weeks ago to provide the rest. I did explain to him what happened though and sent my last 4 years of payment history. Hopefuly he can word it where the UW understands. Ive worked way to hard the last 3 years to get my credit from low 500s to a 682 for this only to have a major hiccup so close to closing.