Tulsa Mortgage : Podcast 37 – Part 2
Tulsa Mortgage Here’s my idea, in your divorce decree, you should have something in there that says that this spouse, whoever is receiving the property, is required, according to the terms of the divorce decree, to refinance the property and get your name off of it within a certain period of time. Whatever you are agreeable with that might be three months, that might be six months, that may be a year. Now this may not be something that they want to do, it may not be something that they can do. They might have jacked up credit and they can’t qualify to get a refinance.
Tulsa Mortgage But if you want to protect yourself, that’s something you should put in your divorce decree because if they never refinance it there’s nothing you can really do about, but if they never r– Well, there is nothing you do about it when it comes to your credit but you can hold them in contempt of court because they haven’t followed the terms of the divorce decree. Now, if they go refinance the house and take your name off of it, what do you think happens? It’s not on your credit anymore. Now they are holding this over your head for the next five to 10 or 20 years or however long that mortgage is.
Now you don’t have to explain that liability every time you apply for a credit of any kind, whether be a mortgage or car, and you also don’t have to worry about five years down the road your spouse not making the payments on the loan. You know what I’m saying? Tyler, you know what I’m saying?
Steve: So in what we are talking about is just people doesn’t realize that even though you got divorced doesn’t mean that your ex can’t mess up your credit. We’ve had circumstances where a credit card bill or credit card offer came in the mail, your spouse knows your social after you’re divorced or during the divorce they apply for a credit card in your name. They jack up the balance on the card, they don’t make the payments, you don’t find out because they’re–
I had a guy whose wife was, now ex-wife, who was opening up cards in his name while they were still married and she had set up the delivery of the statement to go to her personal e-mail so he never got the mail that showed that she was jacking up all these cards. She did it two or three different times and every time he would get in there and get it paid off and she would go shopping and buy stuff for her daughter or whatever. And people can do that because they have access to your information, they have access to your mailbox, they have access to the things that they need access to in order to use your credit, mess up your credit. We have something going on in the studio, there is like a trampling on the ceiling?
Tyler: There is a party upstairs. It’s kind of early for a party.
Steve: Hold on, let me listen to that. I think it is a party Tyler. There is a party upstairs and we didn’t get invited, maybe it’s a divorce party. [Laughs] Maybe it’s a divorce celebration. They heard our podcast and they thought, how amazing that Currington would do a podcast on getting divorced.
Tulsa Mortgage So what I wrote down here last night Tyler, the judge has the ability to assign credit obligations to either party and so your spouse might be awarded the vehicle and the pain that goes along with it. But again I don’t care if it’s a mortgage or credit card or whatever, get your name off of it. Put something in there that says, I am getting divorced and you have X number of days or months or years to refinance the property, refinance the car, get the credit card out of my name so that they are able to– You don’t want to be tied to that person for the next however many years that those accounts are open, if you don’t have to.
Because the judge can assign the obligation to either party but it doesn’t mean that that creditor can’t come after you, just like a mortgage contract if you have a credit card or any type of account that’s open, it doesn’t have to be a Tulsa mortgage account, it might be a Citibank credit card and if that’s the case, you can’t write a divorce decree that supersedes the contract you already did with the Citibank. You can’t say, well, Citibank, I got divorced, I no longer owe you this. Look the judge gave that to my ex-wife or my ex-husband. Citibank is going to say, “You are paying it dude, I don’t care what your divorce decree says, you signed the contract, you said you’re going to pay it, you and your wife aren’t getting along, that’s not my problem. Pay up sucker, right, pay up sucker”.
So, anyway, even if you sign a warranty deed, you quickly claim your property to your spouse, unless they refinance a loan and get your name off of it, their payment history is still going to appear on your credit report. It’s just going to happen and the questions are going to be raised. And look, maybe you got a responsible ex spouse who has better credit habits than you, then maybe it’s not a bad thing because it will help your credit.
Tyler: Right, except for the fact that you still got to count the payment.
Steve: Well, not necessarily, if you have a door sticker that says that they were awarded the house and the payments are not yours, then you could avoid that. And if they’re making payments on it and they’re making them on time, it would actually make your credit stay good but you all are going to have to address it. I mean you’re going to have to dig that up. So just make sure– We have people who get really, kind of upset with us sometimes because there, we’re like, “Hey we need your divorce decree”, and are like, “Well that was in 2004, it’s 2016”.
Tulsa Mortgage You’ve got a kid who is 12 years old now that was one at the time you divorced. We don’t know what the terms of your divorce were, we don’t know if you were required to pay $10,000 dollars a month in alimony and child support until the kid’s 18 years old. It’s only been 12 years. And we’ve had people that have been divorced from 1980 that we find out about it via the divorce decree. I mean it is what it is. It’s a document that your lender is going to need so just hang onto it. Put it in drop box or something. Here is some technology for you, put it in your drop box.
Sometimes when you have obligations like car payments and credit cards, different stuff like that, that’s on your credit, if you can document via your divorce decree that the spouse or the ex-spouse has been awarded that debt then your lender, your Tulsa mortgage company might be able to erase it from your obligations so that we are not counting that payment against you and you can therefore qualify for a loan and it doesn’t mess up your debt to income ratio. So get with your lender to check with them on that because it is a possibility that you can get some of those debts that are listed under all your ex-spouses, you can actually exclude them from your debt ratio so that you qualify for more house.
So just to recap guys, if my ex has screwed up my credit what do I do? Well I’ll tell you what you do, just like I said from the beginning, is you make sure that doesn’t happen by setting up your divorce decree. Look, I hope you don’t get divorced, but if you do, you got to do things right. So make sure you call a– You know, there’s lenders that divorced– There’re lenders that get divorced. Me and Tyler are about to get divorced. There’s lenders that specialize in divorce lending. I mean, they literally, like, call on divorce attorneys and they get referrals for people that are going through divorce because, typically, when you own a home and you’re getting a divorce you sell a home and then two people buy a house and we do home loans, so it’s not about thing. But just make sure you get with a lender that can advise you the best way to set up that divorce decree so that you’re protecting yourself from your spouse jacking up your credit or further penalizing you for the rest of it.
Tulsa Mortgage Hey, there’s some very vindictive people out there. So there, I mean, we’ve had situations where spouses have like intentionally not paid so just to mess up credit so that the other spouse couldn’t get what they wanted. Don’t give them that power. Please. Put it in your divorce decree, get away from the joint debt, get your name off of it, get them refinanced require by the divorce decree so that you don’t have that problem 10 years down the road. That’s all we got for today’s podcast we’re talking about – I got divorced, my ex messed up my credit, how do I fix it? Thanks for listening today. I’m Steve Currington, you’ve been listening to the Steve N Tyler Show.
And we end with crickets.
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