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Getting a Mortgage while having legal trouble

I was involved in a car accident and its lead to legal issue. Lucky enough to have dual income with my wife and so we can still afford a mortgage using her income and credit (mines not looking good these days), but is my lawsuit going to cause issue on her side? by gattica78622508 from Hartford, Wisconsin. Jan 23rd 2015 Reply


Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

She can buy and mortgage by herself, as long as the judgment is in your name only. Do not add your name to title until the judgment is discharged.

Jan 23rd 2015
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David R Youngs - Assistant Vice President (DavidRYoungs)
#2 ranked lender in Minnesota - 68 contributions

When you ask if this lawsuit could "cause issues on her side," what exactly are you referring to? Are you asking about qualifying to refinance? Modifying your current loan contract with your loan service company? Buying a new home? Or something entirely different?Of course if your question involves needing legal advice, then you may want to consult with a Personal Injury and/or possibly a Real Estate attorney. However I'd be happy to try to answer your questions more fully and hopefully point you in the right direction. Feel free to give me a call at 651-636-2840 Ext 12 or email me at dyoungs@progressivels.com Thanks for the question!

Jan 23rd 2015
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Steven Brand (stevenbrand)
#4 ranked lender in Minnesota - 109 contributions

It depends. WI is one of 9 "community property states" and depending on the loan that your wife gets... your debts need to be included by her income for "DTI" approval. You need to talk to a WI licensed Mortgage Guy who can take a full application for your wife to confirm all the details. BTW... I've been licensed in WI for over a dozen years and willing to help out if you need. Click on my contact info or drop me a line at Steve@iLoanHomeMortgage.com

Jan 23rd 2015
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Mandy Fritsche (mortgage.mandy)
#35 ranked lender in Wisconsin - 20 contributions

As long as you qualify for a conventional mortgage and your wife is not named in the law suit you will likely be able to accomplish this. The key would be not use any assets that could be lost through the law suit.Sincerely, Mandy Fritsche, Prospect Mortgage, Mortgage Loan Officer, NMLS# 557211I am able to originate in WI262-327-5700 Cell, 877-868-9198 Fax, mandy.fritsche@prospectmtg.comwww.MyProspectMortgage.com/mfritsche

Jan 23rd 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

More info would be needed, so it depends on which loan product your going after and how much income your spouse is making.. Wisconsin is a "community property" state.. meaning that even though you have a non borrowing spouse, then the guidelines state we have to add your debt to her debt to calculate her DTI.. this is required for all government type financing.. FHA, VA, USDA.. for conventional, they will not look at your debt and add it to hers.. but conventional requires a larger down payment.. 3% for first time home buyers,,, everyone else 5% plus.. As far as the legal trouble, on a Uniform Residential Loan Application (Form 1003), Page 4, Section VIII, question d. it asks if you are a party to a lawsuit.. you and your wife would need to answer this question, and if you mark yes.. you will need to write a letter of explanation detailing your involvement.. rarely is it a deal breaker, but it would need explaining.. so as you can see, much more info regarding your specific scenario would be necessary to answer your questions properly.. Try reaching out to a local mortgage broker and let him analyze your situation.. only then can you get specific answers.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 23rd 2015
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Ritchie Baumann (Ritchie)
#28 ranked lender in Wisconsin - 28 contributions

Hi, You are getting great answers from those who have already posted as I would say the same things in my answer. I'm a lender in Brookfield and I go to Hartford weekly to pick up my step kids. If you would like to meet in person to discuss, we could meet at Perk Place. Ritchie 262-754-3331 Ritchie@trustprovidence.com

Jan 23rd 2015
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