Lender wants AU card paid off to close?!

[Anonymous]

This came out of left field. I'm an AU on my dad's Chevron gas card. It helps me because it's 30 years old with a perfect payment history. I don't use it more than maybe once a year and I don't pay it.

It has a $900 balance and today my LO said I have to provide proof I paid it in full. I have no credit card debt or any other debt beyond some collections that are all required to be paid off to close as well (FHA over 2k). So, I literally have zero debt... other than this $900 gas card that's not mine.

I'm pretty sure that I can get out of paying this if I provide proof I'm not the one making the payments... Except that I actually DID make one payment to bring down the utilization and help my credit score. That was about two months ago and it's the only payment I've made on that account in 12 months. My dad has made every other payment.

I don't have the extra money to pay this. Really hoping I don't have to. Input?

[Anonymous]

I'm pretty sure you can have your dad take you off the card easily for a short time since you are just an AU, do you have any other cards with a long history?

[tjmolly]

If your FICO is good and you are not on the cusp of a critical number, have him remove you ASAP and get with the CRAs to get it removed. As I recently mentioned in my post...Underwriters are idiots, plain and simple.  There is no need for you to have to pay it all off to close.  Your Dad's recent statements should suffice to show what is the minimum due and that it's being paid timely. Best of luck! And to you underwriters..."Bleep Off!"

[KSK1912]

It is senseless they make you pay off, because you are not responsible for the payments in the first place. Also, they should not ask you to pay it off anyway, unless the minimum payments are cutting in to your monthly mortgage payment, such as if you are borderline with the DTI including that payment. But again, you are AU and they should not ask you to pay it off to begin with. I guess it depends on the lender.

[ezdriver]

Is it possible that the AU agreement makes the AU jointly responsible for the full balance due? If not, then get yourself off the account abd build your credit profile on your own tradelines. Generally, an AU is not responsible for payment.

[Anonymous]

I'm 38 so this is by far my oldest account. It also has great payment history I need to balance out some old late payments. So removing it probably isn't a good option.

I emailed my LO to see if I can just get the statements showing my dad made all the payments. Even the one month I paid on it, he made the actual payment due... I just made an additional payment to get the util lower for my credit.

Fingers crossed I don't actually have to pay this! The minimum payment is like $25... It'd be crazy if that somehow pushed me over DTI since I have no other monthly debts.

[Anonymous]

your UW is an idiot that needs to find a new career. Tell your LO your not interested in doing business with them. It's not your debt and you aren't responsible for it. Also I'm sure the $25 payment doesn't mess up your DTI. Fire them, find a good mortgage company.

[Mrsg714]

When are you scheduled to close? If it's right around the corner then I probably wouldn't search for a new lender. Can your dad pay the card off?