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Replies (15)
- wetdawgs
- Contributions:26834
The simplest requires action from your husband. He needs to get your name off the car loan and qualify on his own income.
As you've discovered, co-signing can come back and haunt you (even when you were trying to be nice). The financial community considers it your debt, even if the other party is paying it fully. While this may not seem fair, if the other party suddenly stops paying you will have to pay.
I hope you have a reasonable relationship with your husband and he has enough income. Otherwise, you may have to go through the steps of legal separation and assignment of debts (even then he will have to get your name off the loan).
As you've discovered, co-signing can come back and haunt you (even when you were trying to be nice). The financial community considers it your debt, even if the other party is paying it fully. While this may not seem fair, if the other party suddenly stops paying you will have to pay.
I hope you have a reasonable relationship with your husband and he has enough income. Otherwise, you may have to go through the steps of legal separation and assignment of debts (even then he will have to get your name off the loan).
- mleach5271
- Contributions:11
Yes that would be the simplest thing to do.However as I said they will not remove me off of loan. That part I guess is done, is there another way I can go about this. My LO said that he was going to check into FHA because he said he thinks they will allow him to do a debt write off. I don't know anything about that however I would like to know what am I facing and maybe how this can be dealt with? Thanks for the reply!
- Lance Holtman, "First City Financial"
- Contributions:111
A co-signed, (contingent liability) does not have to be counted in the debt ratio if 12 on time payments have been made by the primary borrower. Evidence of co-sign position, evidence of on time payments, and evidence of who made the payments must be in the file.
- Clay Branch, "Georgia Loans"
- Contributions:7837
Did your lender tell you what your debt ratio is with the car payment?
- mleach5271
- Contributions:11
@ Clay, yes he did. However @ Lance I can prove he is making payments out of his account but it's only been 6 months so far. I just would like to know if there is another way I can get around this issue? If not thanks for the replies!
- Pat Pribisko, "Pat Pribisko"
- Contributions:1426
I feel bad for you. That's one reason we won't co-sign for a loan for our children. We would rather give them money or loan it to them, because a co-sign stays with you for a long time. My suggestion is to find out if your husband can & will refinance the car loan himself, without a co-sign from you.
- Clay Branch, "Georgia Loans"
- Contributions:7837
mleach5271, what did they say your debt ratio is with the car payment? Assuming the car loan will not be refinanced taking you off the loan, you may get a few suggestions on this thread on how to make it work including the car payment.In order for someone to give you suggestions it is necessary for us to know the following:
Your gross income
monthly debts being counted in your debt ratio
details of the proposed loan:
Conventional, FHA, etc
Loan amount
interest rate
amount you pay for hazard insurance per year
amount of RE taxes
credit score
Your gross income
monthly debts being counted in your debt ratio
details of the proposed loan:
Conventional, FHA, etc
Loan amount
interest rate
amount you pay for hazard insurance per year
amount of RE taxes
credit score
- mleach5271
- Contributions:11
@ Pat thank you, and I will never co-sign for anyone anymore this is a mess. My husband can't refinance the loan himself. I am just going to have to wait until Monday to see what the under writer has my LO at this point that's the only thing I can do.
@ Clay, if I have to give all that information up just to get suggestions, then I maybe on the wrong website. Because Trulia is another advice website for mortgage's. With that being said, sorry Clay I would write not all that on this thread or any other. I think my question is straight forward for someone that knows about mortgage financing and underwriting. Thanks all for the replies!
@ Clay, if I have to give all that information up just to get suggestions, then I maybe on the wrong website. Because Trulia is another advice website for mortgage's. With that being said, sorry Clay I would write not all that on this thread or any other. I think my question is straight forward for someone that knows about mortgage financing and underwriting. Thanks all for the replies!
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
typically a 12 month track record is needed to not count the debt against you. I understand not wanting to put your information on thes type of forums. I am licensed in PA and if you would like a second opinion, I would be happy to help. You can contact me through my profile. I will not automatically run your credit. I will go off what you tell me for the time being to see if there is anything that can be done.
- mleach5271
- Contributions:11
Thank you Joe. I will contact you tomorrow will that be fine?
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
Look forward to it..
- Clay Branch, "Georgia Loans"
- Contributions:7837
mleach5271, your situation is that your debt ratio is too high to be approved with the lender you are currently working with when including the cosigned car payment. No one posting on Trulia can give you a solution without knowing the answers to the questions I asked. Lenders have different tolerances on the debt ratio, some allow 45%, some allow 50%, and some have no ceiling depending on the type of loan as long as it will approve in automated underwriting. Hopefully Joe will be able to give you a solution so that you can refinance. Good luck.
- mleach5271
- Contributions:11
Thanks Clay,
I just wanted to say I have an approved loan. However I could more money if I can get that debt ratio down with auto loan. As of right now I am just thinking about taking what was offered to me and just say the heck with it, I don't know so confused right now. But I did see a Reo house that is really nice for 80,000. Thinking asking about that house. It really sounds to good to be true really.
I just wanted to say I have an approved loan. However I could more money if I can get that debt ratio down with auto loan. As of right now I am just thinking about taking what was offered to me and just say the heck with it, I don't know so confused right now. But I did see a Reo house that is really nice for 80,000. Thinking asking about that house. It really sounds to good to be true really.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Holy hardheads Batman! Good luck Joe!
- Seth Robbins, "SethERobbins"
- Contributions:33
Typically the easiest (in theory) is to have the person your a cosignatory for refinance into their own name; but that is not always possible or feasible! Another way to address this (and it varies by lender) is to provide to the lender 12 months of check copies or payment statements showing the loan was paid by the other party ENTIRELY for the last 12 months and a signed letter of explanation stating this debt is paid solely by the primary on the loan!
Trying to find some answers, on how can an auto loan I cosigned for not be counted as my debt?
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