Can you still remain a co-borrower in a mortgage with your ex spouse and your credit not be affected?

Question by Deblynn: Can you still remain a co-borrower in a mortgage with your ex spouse and your credit not be affected?
The divorce settlement between these people allowed one spouse to keep their house, however the person is unable to refinance at this moment due to their current income. The spouse that left the home agreed to remain on the mortgage until the ex is able to refinance on her own. The spouse that left is in a relationship and would like to get married and buy a home with the new spouse. How would this affect the ability of the new couple to borrow money for a new home?
The spouse that is keeping the house is a credit counselor and told the ex that she would draft a document to “release” him from the responsiblity of the mortgage and that she would assist him in ensuring his credit is in proper condition for the purchase of his next home. I don’t think this will fly with any creditor and seems fishy to me, however he bought it and my concern is that will a have a huge impact in our ability to borrow money when we purchase a home together. I also don’t know once we are married, if in the case of default by the ex and they go after him, they can also go after me for collection. The home we will buy will be mostly bought with my divorce settlement which is 1/2 of the equity of my previous home with my ex.

Best answer:

Answer by marlita
Co-borrower = Co-debts, as with a co-signer. It is considered your responsibility until paid just as much as the other persons. It doesn’t matter who if anybody is living in the house. It coukld be empty or occupied by a renter.

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4 Responses to Can you still remain a co-borrower in a mortgage with your ex spouse and your credit not be affected?

  1. spifiman1 says:

    It will have a huge effect. Until they get the other mortgage out of their name, it’s going to count against them as far as debt to income.

  2. Paul H says:

    As long as you remain on the Title or Mortgage, you will take liability for defaults by either party that will reflect on your credit report. Yes, your credit will be effected.

    If you need assistance with a mortgage financial need and would like the opportunity to discuss your situation and options in further detail, please feel free to contact me via email or at my office. My name is Paul Hernandez, I am a mortgage broker in NY.

    Paul Hernandez
    Park Place Home Mortgage
    212 308 1371 Direct.

  3. nicolejane68 says:

    It would affect it greatly seeing that he or she is already on one home loan. Now, if they had excellent credit and great income and we’re talking 700 range for credit and a huge income then no problem, but if they don’t they will have a problem. To bad the person was trying to be a good person in doing this and may have hurt theirselves.

  4. STEVEN F says:

    If one spouse can’t refinance NOW, and the other doesn’t force a sale, the house will be ‘refinanced’ when the foreclosure happens. No matter how bad your credit, you CAN NOT afford any house you can’t get someone to refinance. Few people can afford as much house as they can get financed.

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