I live in California.

In a divorce settlement agreement I am buying the family home from my husband. However, my husband agreed to keep his name on the current residence loan (a low interest loan to keep me from having to refinance at a higher rate) but title will be transferred to my name. The agreement states he will keep his name on the loan but is not responsible for any future mortgage payments, taxes, insurance, etc.

Obviously this loan shows up on his credit report.

My understanding is that when he is applying for a loan for his own residence that the lender cannot use the loan on the residence I am keeping against him in granting credit (because it is part of a divorce decree) providing he shows the Judgment that states he is not resposible for the payments.

Is this correct? If so, is there a particular law/statute that states this?

Thank you very much.

-- Denice (Denice31@aol.com), January 04, 2000

Answers

Most lending underwriters reviewing your husband divorce and settlement agreement will not include your mortgage loans against his debt raitos. With regards to the law issue only an attorney can answer that one question. I hope this response answered your question. If you have any other questions please feel free to email me at mtgloansonly@aol.com.

-- Henry (mtgloansonly@aol.com), January 29, 2000.