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Parents asked me to fill out Non-borrowered credit authorization form.

Member

Parents asked me to fill out Non-borrowered credit authorization form.

My parents have been fighting with their mortage lender for years and about 1.5 years ago hired a lawyer because they fit the criteria to be egilibly for refinancing and the company would not work with them. They also can't afford to pay the current mortage.

 

Anyways they have a court date coming soon and they asked me to sign some paperwork saying I contribute x amount of money per week. I do contribute about ~300 a month and we wrote that. But the second form is asking for approval by me for them to run my credit report. It doesn't say if its a hard inquiry or a soft inquiry, and quite frankly I'm a little pissed off! My score is 720 and I've actually had two negative marks, both from their car insurance not paying a plantiff properly and from the health insurance fighting to pay a bill that was 100% covered (this is getting droped soon and the other one was on my repot for 6 years).

 

I'm not sure if its a deal breaker to the lender or not, but realistically I'm probably just looking at some type of inquiry? I'm a bit upset because I had been saving for 5 months to buy a brand new car this month and i don't want that to affect my lending potentional

Message 1 of 10
9 REPLIES
Frequent Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

Yuck...

 

Tough call for me to make as they are your parents not mine.

 

I'd at least sit down with them face to face and discuss clearly why your credit is being run for their debts before signing anything. To me it smells of potential problems down the road.

 

Good luck

Message 2 of 10
Member

Re: Parents asked me to fill out Non-borrowered credit authorization form.

This is what the form says

 

Your Hardship Affidavit /Request for Modification (RMA) or Uniform Borrower Assistance Form (Form 710) indicates that a non-borrower contributes to your total household income. For our purposes, a “non-borrower” is an individual who resides in your home and contributes to the household income but is not personally obligated on your mortgage loan. As part of the evaluation process, a Credit Authorization Form must be completed and
signed by each non-borrower.
 
I'm not entirely upset, I realize they can barely pay the mortage if and when the company would allow them to do it, I'm just annoyed that I have to put my name on anything for them. I'm also wondering what type of inquiry is checked (soft pull vs hard pull) becuase not much information is listed. Like I said I was planning on purchasing a car this month and it would suck to see the score go down significantly because of a credit report inquiry.
Message 3 of 10
Frequent Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

Quick Google search on that form indicates to me it will be a hard pull on your credit.

 

What's your current inquiry count at with each of the 3 B's?

 

Message 4 of 10
Regular Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

I hate to blow this up, this will definitely be a hard pull and quite frankly May even place you on paper.  On the other hand, parents go through an awful financial burden rearing us to become decent human beings.  Will this be a pillow for your head? or is that car your bed?.  While not knowing your circumstance and not making any suggestions to your story, think before making this decision.

Message 5 of 10
Member

Re: Parents asked me to fill out Non-borrowered credit authorization form.

What do you mean place me on paper?

Right now I have 1 inquiry on my credit report which was for a CLI. I'm going to sign the paperwork regardless I just really want to know if could affect my score.

Message 6 of 10
Frequent Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

I'd read 'Place you on paper' alludes to potentially being responsible for their debt if things go south.

 

With only one inquiry reporting I'd not fret about it hurting your future loan that much and signing the paperwork will hopefully help your parents get through a bumpy spot in their lives!

Message 7 of 10
Established Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

Going from 0 to 1 inquiry can be up to 20ish points, and will start droping off every month.

Should be near 0 impact for an auto purchase 5 months from now.

Message 8 of 10
Regular Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.


Kree wrote:

Going from 0 to 1 inquiry can be up to 20ish points, and will start droping off every month.

Should be near 0 impact for an auto purchase 5 months from now.


I understood the OP to mean that they've been saving up for 5 months to buy a car this month in which case an additional HP would absolutely impact the loan terms. 

 

I would suggest the OP start shopping for a car loan immediately. Forget about dealer financing, look to your CU or bank. Conditional car loan approvals are often good for a set period (sometimes up to 60 days) after they give you an offer. Assuming they HP you when you initially apply for the loan, you can probably then incur another HP afterwards from your parents' mortgage servicer without affecting your auto loan terms. 

 

As for the non-borrower affadavit, chances are it's an HP. If it were an SP, then they can probably do that without explicitly obtaining your written consent. The fact that they asked means they likely will HP. 

Message 9 of 10
Senior Contributor

Re: Parents asked me to fill out Non-borrowered credit authorization form.

I was just curious...when did they get the mortgage?  I'm just wondering if they might be a candidate for the HARP program.  I'm not sure what initial mortgage dates the HARP goes by.

 

I got my place in 2007 at a 6.2% rate.  In 2012 I did a refi through the current (at the time) mortgage lender at 4.0

Just wondering if that might not be an option for them. 



Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 12/2017 TU 779 - EQ 779 - EX 782
Goal Score: 850

Bury me in the garden...last app 07.27.17

Message 10 of 10