buying with past foreclosure

[dawnranae]

What is the name of your state?undefinedWhat is the name of your state?MN

I am a co-buyer for a house I have not lived in for over 2 years and it is now facing foreclosure. I cannot afford attorney costs or back payments to prevent any of this. I am wondering how much damage this will cause my credit. Me and my husband would like to buy a home in the future. He has good credit and I have been told there are creative financing programs out there that would allow him to buy under his name alone (even though we are married), list me as renter, even writing a lease, therefore using my income or "rent" payments as income to qualify for more of a home,but not using my credit. Does this sound right? Or would we have to wait a certain amount of years to be qualified for more of a home together?

 

[seniorjudge]

...Does this sound right?...

Yes.

However, you must really do some "creative shopping" when you need to borrow again. The financial sea is absolutely swarming with predatory lenders these days, so be afraid. Be very afraid.

 

[MortgageGuru]

No. It doesn't sound right. Rental income would only be counted if it was a multi-unit property. Since you are married, your name would be on title to the property if you were on the loan or not so rental income from you to your husband is not an option. Finally, boarder income can not be considered in the debt ratio. With his good credit, he can do a stated income loan in order to qualify for a home loan that would otherwise require full documentation from both of you. Any bank, broker, or mortgage lender can do this loan for you.

Hey senior- replace the words financial/ lenders with legal/ lawyers

 

[seniorjudge]

"Hey senior- replace the words financial/ lenders with legal/ lawyers"

Amen to that, brother!