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Refi in spouse's name only


spousalunit99
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The last post in this topic was posted 3274 days ago. 

 

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Hi

 

We hit an issue with refinancing a property where my wife and I are both on the deed but I am on the mortgage note, not my spouse. I have mediocre credit due to a prior Ch 7 and a loan mod attempt (meaning payments were behind for a while). I declined the loan mod as it wasn't really going to do me any good and I brought the payments up to date.

 

Now we want to refi in my wife's name only. The current mortgage does not of course show up on her credit report as she is not responsible for the payments (not being on the note). She has Credit score of 760, plenty of income in her name (verifiable), little debt, and the LTV is 75%.

 

The bank said as long as the current mortage is currently up to date so they can get a payoff figure (which they have done) they wouldn't care about the late payments as they are in my name and the new mortgage is in my wife's name only but the underwriting department (mistakenly in the view of the loan officer) is asking for the payment history in my name showing up to date payments, which I cannot of course provide.

 

This is not in a community property state.

 

Everything I have read indicates that they should not be asking for this information, How can my credit history affect their decision to issue credit to my spouse who as I said, has excellent credit, never filed for bankruptcy, and has more than adequate credit and collateral. ?

 

Thanks for any comments

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Everything I have read indicates that they should not be asking for this information, there are lots of unpublished rules.... How can my credit history affect their decision to issue credit to my spouse who as I said, has excellent credit, never filed for bankruptcy, and has more than adequate credit and collateral. ? it isnt your credit history they are concerned with.... it is the spouse's mortgage payment history that is hurting the deal.

 

 

Thanks for any comments

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i understand the way you see it.... i am trying to explain to you the way lenders see it.

 

you dont seem to understand that the banks dont want YOUR mortgage payment history....... this is why they poke around into your business when you try to do a refi like this.

 

REGARDLESS of who was on what or going to be on what..... by lending to your wife, they are getting YOU

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i know what they are asking for.

they are asking for YOUR payment history of the mortgage being refinanced

 

you think that has nothing to do with HER loan...... what i am trying to say is that the lender decides what is relevant.

 

what if you were in forecosure?

do you think the wife should be able to refi you out of that?

 

lenders arent dumb.

just because it looks like you found an 'angle' doesnt mean that you win.

 

plain and simple.... if you are refinancing a home.... housing payment history is required.... regardless of who is paying the note or who is on it.

 

community property state(or not) rules don't apply to this situation.

 

 

and to directly address your last comment. i didnt mean they didnt want your payment history.... they dont want YOU. and by lending to the wife.... they are getting YOU and YOUR history of being behind on YOUR mortgage.

 

sorry if that sounds harsh.... not meant to be.... but we seem to be caught up in symantics and i felt i needed to word it this way to be clear.

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Think of it this way - Your wife has been living in the home with you - so in their eyes she is half responsible for living expenses for the family - if you couldnt pay the mortgage she should have been able to keep it up to date - since she didn't it reflects on her - banks want to know the history of any borrowers housing regardless of whos name it is in - Just like they would check her rental history if she were buying -

Regardless of community property state - Anything but housing - Had you been late on a car and got it repo'd but kept the mortgage up to date she could probably get the loan -

 

Hope this helps

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It absolutely is an underwriting guideline that the housing payment history for the home being refinanced be underwritten as well. Doesn't matter who's on the current mortgage. The person refinancing is saying they own the property and are responsible for it. The guideline is in place, in part, to prevent foreclosure bail outs. They don't want you being completely behind on the mortgage, then letting your wife refinance, just to default on that as well. This is a standard guideline that you are going to find everywhere.

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