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.
**********************************
like buttons
Replies
Keep it civil guys. Starting to get off track.
Ina nutshell complete the financial sheet based only on the borrowers financials. Income (even if zero) minus your expenses. Simple.
Then submit to the lender. The lender will dictate whether or not they want information from your spouse.
If they do just provide it. If they ask and you don't want to then they will probably deny the short sale.
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.
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.