Hello everyone, 

Back in 2000 I bought my first home, I was married with children, in 2005, I went through a divorce, the house deed and mortgage was in my name only.
I tried to sale the house but was unable to do so. I remarried and bought a second house with my current wife. I was able to rent my first house. 
In 2008 I lost my job and I decided to open my own business (In my wife's name) The business is not doing well and it is not paying me a salary. 
The current renters defaulted on the payments and as domino effect I was not able to pay the mortgage for 2 months now.  Renters are out, but the house needs  major rehab, which I can't afford to do.  
I spoke to my lender who gave me the option of a short sale. I was looking into the financial sheet. I don't have an income, but my current wife does, she pretty much carries the household expenses with her wage, we have a joined bank account. Will my lender consider her income even if she has nothing to do with my previous finance commitments? How should I proceed ? Thank you, any advise will be greatly appreciated. 

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Hi Andy. Normally they will just look at the borrowers financial situation. BUT they may very well look at the big picture.

You should be ok. Especially with the divorce being the true cause of the hardship.

Thank you Bryant, 

Per the short sale list, I have to submit a financial sheet. Since I don't have an income, should I not submit it or should I submit it omitting my wife's wages and just show the household expenses, or should I and include my current wife's income and the household expenses? She makes good money, but I don't want to drag her into this since we were not married since I first purchased this house. 

I have never once included a non borrowing spouse's income and have never once been asked to. If the spouse isn't on the loan, their income should be irrelevant. 

I would submit the package with only your income documentation.

Thanks Minna and Ron,

My wife has a higher income, we file tax together and we have a joint checking account. So, if I am to show my tax return and to show my banking statements, they will clearly see her income. I have no way around it. Right? 

What if I just show our failing business bank statement and tax return. Would that be an option? I am the one working directly in the business that has not been profitable so far. 

I am just looking for a strategy to do this short sale with no problems. Thanks for your time guys. 

I wouldn't go hiding any bank statements now - that is fraud. Yes they will see that she has income - that doesn't matter.She's not responsible for your loan. You don't have to hide her income - it simply shouldn't be a factor in your short sale.

This is most relevant when you account for your income and expenses on a financial statement.It is your financial statement as the borrower. She is not a borrower.

Ron - Its Minna, not Mindi...and if you actually read my response - you would see I also recommended he turn in all the documents....

However he is the borrower...not his wife. If his wife went for a new mortgage in her name alone, do you think they would consider his income???? NO.

Same in a short sale.

Do they request a HOUSEHOLD financial statement? NO. They request a BORROWER financial statement.

SHE IS NOT A BORROWER. 

And believe me in the hundreds of loans I've shorted  - in every case where it was clear there was a non-borrowing spouse on bank statements and tax returns - NOT ONCE has the lender asked to see the spouses income documentation.

Thanks Ron! Someone has to give the little guy a fighting chance against "bank logic".

Thanks again guys. I am getting good insights.

So Minna, should I disclosure that my wife works and has an income in the hardship letter? Should I fill up the financial sheet and put zero as my income but Include my household expenses, and send them my joined bank statements with my joined tax returns and see what happen from there? Is this my best action? 

Since I don't represent you and I do not know the details of which sheet you are completing I can't advise you specifically on that. Your real estate agent or lawyer can help you with your specific documents.

My answer is general in nature.

I thought the financial sheet was standard sheet where you put information about you income and expenses in all cases. In my case (Wells Fargo) it never mentioned to include my espouse 's wage. It only asks borrows and co-borrows information of how much gross income and how much they actually bring home, all their expenses and how many people owns their own car in the household, that's about it. 

Thanks for your time everybody! 

Financial sheets are not standard...they vary by investor/servicer....and I will 100% disagree with Ron here - You absolutely want 3rd party representation - seek the best you can find. DO NOT look to your servicer for guidance. Your servicer represents the servicer's best interests  - not yours. You want someone dedicated to serving your best interests in this transaction. 

Don't go asking the wolf for advice when you live in the henhouse...although I'm sure they would love it if you would.

Seek and secure the services of an independent, local, experienced short sale agent to help you with this.

Good luck!

Ron - you are exhausting. Perhaps the consumer should look at the source of their information.

YOU are a servicer...how many short sales have you closed? How many homeowners have you helped to get out of their mortgage debt and move on with their life? let me take a guess...ZERO? Is that right? Your job is to serve the servicer and their best interest...which is very different from the consumers best interest.

I am a real estate agent that specializes in short sales. I serve consumers who need to get out of their mortgage debt and move on with their lives...which I have accomplished 100s of times and to a 95% + approval rate. Don't make me go to the reviews and publish my record ( which anyone can find by googling my name) to prove my point. 

I'm not sure what a servicer is doing trolling a short sale board, but since you are inexperienced in the material at hand, maybe its best to sit back and read, rather than try to advise. Or find a new hobby perhaps. I'm checking out of this endless conversation now. Good luck with all that servicing you do Ron.

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