I would like to buy a house in the next 2-years or so, but forsee problems.1) My wife (we're recently married) had a short-sale on her house in 1996 (i.e., the lender foreclosed, sold the house, and took a haircut on the mortgage). Obviously, this is on her credit history and she has had trouble obtaining credit ever since.2) My credit history is relatively clean (need to confirm as the bastards at American Express may have noted my record when my corporate card went late - they got paid + penalties). I discharged a $90,000 mortgage 10-years ago (sold the condo), and never had a credit card balance or outstanding loan in 10-years.Our application for a crummy joint checking account with Citibank (good stock, hate them as a bank even though I'm a customer for 20+ years) was denied (likely based on my wife's history), and I can just see problems ahead with a mortgage. I intend to put down over 50% in down payment, but still need to apply for a large mortgage ($160,000+). I could apply in my name only, but the house won't be joint property (which may create some maritial problems).What do Fools out there have to say about 1) how long a short-sale or any big credit problem persists, and 2) on my need to get a mortgage when I go house hunting.
a realtor friend of mine said that mortgage problems hang round on your credit report a LONG time. anyway....if you are going to put down 50%...it may take some work, but i think you can find a company willing to take that risk.
I could apply in my name only, but the house won't be joint property (which may create some maritial problems). This is not quite accurate. You can get the mortgage in your name only but still take title jointly, so the house will be owned jointly. The title document(the deed) is different from the mortgage document. So the house will be joint property if you take title as joint property (e.g. tenants in common, joint tenants with right of survivorship, etc.). In fact, if you can qualify for the mortgage on your own, that is probably your best bet. I am in a similar situation (I'm also the "good" spouse), and my husband and I have been careful not to have any joint credit, so my credit file will stay clean.Good luck!
AWESOME! I know a few people who could use this info. How does one do that?Thanks!Heather
Under the circumstances, to put the house AND the mortgage in your name only would avoid any investigation of her credit, assuming your income would meet criteria for making the mortgage payments. At the same time, to write your will naming your wife as your beneficiary in the event of your death so that it is clear to her that you really have her in mind, would seem to assuage any emotional problem related to the house being just in your name. Best of luck, Chris
My second husband and I bought a townhouse. He applied for and receive the mortgage using ONLY his credit and credit history. We didn't want to tie up both credit reports with a mortgage and we wanted to ensure that we could affort the house on one income - the lowest one.He simply informed the lender that he wanted BOTH of our names on the title and the lender and title company put both of our named on the title. It was really very, very simple. No special paperwork.
a realtor friend of mine said that mortgage problems hang round on your credit report a LONG time.Does a foreclosure (or even worse, a short sale) ever get removed from one's credit history? Does the "7-year" rule apply (i.e., bankruptcy is removed after 7 years)?
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