Thanks for the reply, robertmp.
Fortunately (or unfortunately, rather
) we don't have any big deposits going in -- just our standard biweekly paychecks.
As far as the rest, I'll address them in order.
For #2 above, we don't want to be an authorized user on the account. My husband's brother allowed my husband to buy a piece of jewelry for me using a 0% promo on his card, so we have about 24 more months left with a small monthly payment of $62. His brother is fine with the debt being under his name, and he doesn't even worry about the payments. We pay it monthly, but are not interested in having this debt come under our names.
For #3 above, the IRS obligation is not a lien. My friend and I sold items on eBay one year and ended up owing a few thousand in taxes. We were using her PayPal account, so the tax obligation became hers. She set up a payment plan with the IRS that we've been on for 2 years, but we split the payment equally since we are both responsible for the income. The payment plan is not on her credit report (nor mine, since it's not legally my tax obligation), but I send her $150/mo to cover my half of the payment we make monthly.
For #4 above, it is obviously not on our credit reports because we were just given cash from my aunt's personal bank. We have agreed to pay her back a certain amount (which is TBD) monthly.
I realize now that my question wasn't too clear. My question is: if a loan officer sees these regularly monthly payments from our bank statements (and they are NOT on our credit reports), how do they handle them?
Fortunately (or unfortunately, rather
) we don't have any big deposits going in -- just our standard biweekly paychecks.As far as the rest, I'll address them in order.
For #2 above, we don't want to be an authorized user on the account. My husband's brother allowed my husband to buy a piece of jewelry for me using a 0% promo on his card, so we have about 24 more months left with a small monthly payment of $62. His brother is fine with the debt being under his name, and he doesn't even worry about the payments. We pay it monthly, but are not interested in having this debt come under our names.
For #3 above, the IRS obligation is not a lien. My friend and I sold items on eBay one year and ended up owing a few thousand in taxes. We were using her PayPal account, so the tax obligation became hers. She set up a payment plan with the IRS that we've been on for 2 years, but we split the payment equally since we are both responsible for the income. The payment plan is not on her credit report (nor mine, since it's not legally my tax obligation), but I send her $150/mo to cover my half of the payment we make monthly.
For #4 above, it is obviously not on our credit reports because we were just given cash from my aunt's personal bank. We have agreed to pay her back a certain amount (which is TBD) monthly.
I realize now that my question wasn't too clear. My question is: if a loan officer sees these regularly monthly payments from our bank statements (and they are NOT on our credit reports), how do they handle them?
@trnl2016 wrote:
Thanks for the reply, robertmp.
Fortunately (or unfortunately, rather
As far as the rest, I'll address them in order.
For #2 above, we don't want to be an authorized user on the account. My husband's brother allowed my husband to buy a piece of jewelry for me using a 0% promo on his card, so we have about 24 more months left with a small monthly payment of $62. His brother is fine with the debt being under his name, and he doesn't even worry about the payments. We pay it monthly, but are not interested in having this debt come under our names. - It won't show up on the credit report and, if the lender counts this against your debt-to-income ratio, you're getting double whacked because you're not getting it reported against your credit and you're getting the amount you're paying counted against your DTI ratio. I don't really forsee them worrying about this so I wouldn't raise too much fuss about it.
For #3 above, the IRS obligation is not a lien. My friend and I sold items on eBay one year and ended up owing a few thousand in taxes. We were using her PayPal account, so the tax obligation became hers. She set up a payment plan with the IRS that we've been on for 2 years, but we split the payment equally since we are both responsible for the income. The payment plan is not on her credit report (nor mine, since it's not legally my tax obligation), but I send her $150/mo to cover my half of the payment we make monthly. - Ah, well, they're probably going to ask for 2 years of IRS returns and your returns won't show the obligation; thus, don't worry about it because legally, you're not obligated to it.
For #4 above, it is obviously not on our credit reports because we were just given cash from my aunt's personal bank. We have agreed to pay her back a certain amount (which is TBD) monthly. - Yeah, this won't be reported either. If there is a question about the debt, you'll likely have to get a contract made up to prove it and, to be honest, make the monthly "minimum payment" very low, so it doesn't hurt too bad on the monthly DTI ratio of expenses.
I realize now that my question wasn't too clear. My question is: if a loan officer sees these regularly monthly payments from our bank statements (and they are NOT on our credit reports), how do they handle them? - Honestly, case-by-case, but they also don't question bill payments showing up on your bank statements, sometimes you can use Wells Fargo surpay or something similar to transfer money for bill payments too. Unless the amounts are large enough to notice, they're likely not to ask; however, if they do ask, just explain like you did here and try to work with your broker to see if they're willing to just ignore those anways, since they're not valid debts to begin with. From their perspective, if you AND the other obligated party discontinues payment, YOU are not liable, only the other party is, so you're not legally obligated to pay it back from the original creditors perspective.
Great, thanks so much for the response again!! So worst case scenario is that they'll consider it against my DTI, but best case, they won't even worry about it. That's not too bad. I'm not sure what I thought worst case scenario might be, but for some reason I was worried. Thank you again. 
@trnl2016 wrote:
Great, thanks so much for the response again!! So worst case scenario is that they'll consider it against my DTI, but best case, they won't even worry about it. That's not too bad. I'm not sure what I thought worst case scenario might be, but for some reason I was worried. Thank you again.
I'd say you hit the jackpot on that! If you really wanted to, just take out cash and pay with with cash and/or get a money order or use paypal or something to make the payments to them; thus, you'll never really need to explain this to them anyways.
One last thing, while I am sure you trust your friends and family, sign nothing without it first being reviewed by a lawyer.
@Anonymous wrote:
@trnl2016 wrote:
Great, thanks so much for the response again!! So worst case scenario is that they'll consider it against my DTI, but best case, they won't even worry about it. That's not too bad. I'm not sure what I thought worst case scenario might be, but for some reason I was worried. Thank you again.I'd say you hit the jackpot on that! If you really wanted to, just take out cash and pay with with cash and/or get a money order or use paypal or something to make the payments to them; thus, you'll never really need to explain this to them anyways.
One last thing, while I am sure you trust your friends and family, sign nothing without it first being reviewed by a lawyer.
Thank you, that's a great idea. I could easily send my friend $450 for 3 months worth of payments and then skip the next few months of paying her, for example. She would have no problem with that, and I wouldn't have to explain anything to anyone, haha.
The funny thing is... I think it's the friends & family who trust me! Eek for them! :-P ... they have all, in different ways, taken the responsibility for the debt which I'm paying. I suppose they should have asked me to sign something, but I haven't signed anything with anyone. Good thing for all of us that, at least this far, things have gone without a hitch.
