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I need proof of mortgage being paid by "renters"

I own a house with my sister, her husband, and my ex-husband.  I moved out 5 years ago when my ex and I split but we didn't refinance the house at the time to remove our names from the mortgage (lesson learned).  My sister and her husband aren't in a position to refinance because they have a short sale on their credit report that's just 2 years old.  Now, I want to buy a house but I can't get approved because my debt-to-income ratio is too high.  I need some kind of proof that they are paying the mortgage every month and we aren't. I can't say that they are renting the place from me because I don't get any money out of it, but that's what they are doing.  They pay the mortgage every month, they claim the house every year on their taxes, and they get the credit for it.

What kind of documentation do I need to present in order to prove that they are paying it so that I can get approved for a home loan?  
  • October 14 2013 - West Springfield
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Answers (3)

Not only will you need proof of the mortgage being paid, but also the taxes and insurance if they are not escrowed. You could have them provide 12-24 months of canceled checks showing that they are making the payments. But, the underwriter will have the final call on what is actually needed. Also, are you even sure they are making the payments?

Good Luck!
  • October 14 2013
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I agree in principle with Brandon's reply, but would add each individual lender is likely to have a particular requirement to remove the mortgage payment from your Debt to Income ratio.
This question is more fully answered by your new lender, their requirements are the key.
Best wishes, Jim
  • October 14 2013
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Profile picture for Ofe Polack
I suggest that you contact at least two mortgage brokers and yield to their suggestions. If your relatives credit is OK, they may be able to refinance, since nowadays the 2 year short sale period is being shortened.  See what the lenders have to say.
  • October 14 2013
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