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Help with credit cards and home buying


soonergto
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I just came across this site, great info, I searched for answers for a while but couldn't quite get what I needed.

Here is my issue.

My wife and I are looking to purchase our first home(yay) but we have run into a bit of a snag. A few years ago my wife allowed her mother to have a card on one of her accounts and to use another with the promise of paying it off asap. Well my concerns at the time proved to be valid and they still have not been paid off after over 6 years. Now that we are looking to buy a home, we are having issues being pre-approved for the amount we want. This credit card debt currently is about 52% of our total credit card debt and is basically what's holding us back.

My question is this. Is there a way for another individual to assume that debt? Will mortgage companies accept some sort of document stating that another individual is responsible for those payments?

Please help me out. We are at our wits end here. Forgive me if its a stupid question, but we are desperate.

Thanks!

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Actually, if she has documentation that she has been paying faithfully (which it sounds like she hasn't been), in many cases the mortgage company will ignore that debt.

When a friend bought her house, they were concerned because she already had 2 auto loans. One of the cars, she had turned over to her mother who had been making the payments. Her mother submitted bank statements proving that she had been making those payments for 2 years, and the mortgage company esentially pretended she only had 1 auto loan.

Good luck!

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Actually, if she has documentation that she has been paying faithfully (which it sounds like she hasn't been), in many cases the mortgage company will ignore that debt.

When a friend bought her house, they were concerned because she already had 2 auto loans. One of the cars, she had turned over to her mother who had been making the payments. Her mother submitted bank statements proving that she had been making those payments for 2 years, and the mortgage company esentially pretended she only had 1 auto loan.

Good luck!

This is true with most lenders. If she can provide proof that she has been making the payment, the underwriter should accept that. :)

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This is true with most lenders. If she can provide proof that she has been making the payment, the underwriter should accept that. :)
I'm surprised by this....because the borrower is ultimately responsible and would have to make payments if push came to shove.

Good to know I guess.

Best to have mom-in-law take full legal ownership imo. Have her try to satisfy the obligation or take a small loan to pay it if at all possible. It is certainly not fair that you take the risk of default when its not your debt.

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