I recently had a client that thought because his separation agreement stated that a joint debt was to be entirely the responsibility of his ex-wife, the lender still considered the debt as part of his application.
This type of problem can be avoided by pulling your credit report early on in the process. Joint accounts are marked with a “J” and individual accounts are marked with an “I”.
Debts like credit cards, lines of credit, and leases can all impact how a lender views your cash flow ability.
What to do if you have joint accounts that you no longer want on your credit report?
- If you are on good terms with the other party, simply ask them to remove your name from the account and update any credit reports.
- Consider paying the debt and having the other party sign an agreement to pay you back.
- As a last resort, it may be beneficial to hire a lawyer to have yourself removed from large amounts of debt.
In any case, I am always happy to provide a free consultation to help you find solutions and get you best lender for your unique situation.