repo on spouses credit

[samslaught]

I'm trying to buy a house. My wife has a car repo on her credit that happened before we got married. She still owes $11,000. I am buying the house by myself along with my parents. I have good credit, good income and so do my parents. Even though my spouse is not on the loan my mortgage broker said that they have to run her credit. So he did, and when he saw the repo he said that he can't do the loan until the repo debt is satisfied. She's not even on the loan.... I'm confused by this. Our mortgage broker says there are no other options but I just don't believe it. We don't have the cash for the down payment and another $11,000 to pay off the repo debt. So my question is for the pros out there. Are there no other loan options in the world? I'm ready to switch to a new broker if there is!!!

[luckydriver]

I'm trying to buy a house. My wife has a car repo on her credit that happened before we got married. She still owes $11,000. I am buying the house by myself along with my parents. I have good credit, good income and so do my parents. Even though my spouse is not on the loan my mortgage broker said that they have to run her credit. So he did, and when he saw the repo he said that he can't do the loan until the repo debt is satisfied. She's not even on the loan.... I'm confused by this. Our mortgage broker says there are no other options but I just don't believe it. We don't have the cash for the down payment and another $11,000 to pay off the repo debt. So my question is for the pros out there. Are there no other loan options in the world? I'm ready to switch to a new broker if there is!!!

 

what state?

[samslaught]

California

[azpirin]

I like to know that, too. Even if you try to buy on your name only, does spouse's credit matters? California.

[luckydriver]

i dont know the answer but the people who do know do need to know your state, which is why i asked

 

they will chime in i'm sure...community property states have different rules

[ElderGeek]

i dont know the answer but the people who do know do need to know your state, which is why i asked

 

they will chime in i'm sure...community property states have different rules

 

I'm not an authority, but California, being a community property state, goes

by the rule that all assets and liabilities obtained during the term of the

marriage are the joint responsibility of both spouses, whether or not they

are both contractually obligated to the debt (ie, a co-borrowers). Based on this,

I can see where the lender may not be willing to write the loan without OK'ing

the credit of the spouse who isn't a joint applicant to the loan.

[750orDie]

I'm not sure if this helps, but I have a repo too and my LO said that it can be paid in escrow and. It to worry about it. Im sure one of the pros will correct me of I'm wrong though my balance owed is just under 7k

[Brian B The Loan Professor]

i dont know the answer but the people who do know do need to know your state, which is why i asked

 

they will chime in i'm sure...community property states have different rules

 

I'm not an authority, but California, being a community property state, goes

by the rule that all assets and liabilities obtained during the term of the

marriage are the joint responsibility of both spouses, whether or not they

are both contractually obligated to the debt (ie, a co-borrowers). Based on this,

I can see where the lender may not be willing to write the loan without OK'ing

the credit of the spouse who isn't a joint applicant to the loan.

 

That is the issue it is a community property state

[samslaught]

i dont know the answer but the people who do know do need to know your state, which is why i asked

 

they will chime in i'm sure...community property states have different rules

 

I'm not an authority, but California, being a community property state, goes

by the rule that all assets and liabilities obtained during the term of the

marriage are the joint responsibility of both spouses, whether or not they

are both contractually obligated to the debt (ie, a co-borrowers). Based on this,

I can see where the lender may not be willing to write the loan without OK'ing

the credit of the spouse who isn't a joint applicant to the loan.

 

That is the issue it is a community property state

 

Brian is it true that the debt can be settled through escrow? FYI this is an FHA loan

[Brian B The Loan Professor]

i dont know the answer but the people who do know do need to know your state, which is why i asked

 

they will chime in i'm sure...community property states have different rules

 

I'm not an authority, but California, being a community property state, goes

by the rule that all assets and liabilities obtained during the term of the

marriage are the joint responsibility of both spouses, whether or not they

are both contractually obligated to the debt (ie, a co-borrowers). Based on this,

I can see where the lender may not be willing to write the loan without OK'ing

the credit of the spouse who isn't a joint applicant to the loan.

 

That is the issue it is a community property state

 

Brian is it true that the debt can be settled through escrow? FYI this is an FHA loan

 

Yes but that simply means you can pay it through the closing out of pocket - it doesnt mean it can be wrapped into the loan

 

This just makes it easier to document to the bank that it is done as the title company will cut the check for you