[Sienna123]

I just reunited with my ex-boyfriend and he informed me that he offered and is in the process of putting his name on a lady friends mortgage as she needed to remove her ex-husbands name per the divorce decree. So my ex didn't want her to lose the home due to the situation of her having 5 children and one with specific health concerns.

So my question is this. He says his name is not on the deed. I know he is responsible for any payments this lady won't be able to make but if I marry him, do I automatically assume this responsibility as well? Does it affect my credit? What about if he as my husband passes away? Am I responsible for the payments should she not be able to make it? Please tell me everything I need to know that will negatively affect me.

[tickle]

You just can't put your name on someone else's mortgage, money and commitment have to change hands, one mortgage dissolved and another one negotiated. Clarify this with him. Is he buying this lady out and applying for a new mortgage?

[ScottGem]

A lender will add someone as a guarantor on a loan since it makes the loan more likely to be paid back.

Since this debt was assumed before you get married, you will have no responsibility for the debt. If your husband should die while the loan is still open, then his estate may be held responsible for the balance. But you would have no responsibility.

[Sienna123]

Please clarify about the estate. If he dies, and only if she doesn't make a payment, then they can come after the estate? I assume that as his wife, and I inherit his estate that it will affect me for as long as the loan is unpaid. Would there be any way after his death to remove his name without consequences since he is not the primary person on the loan?

[ScottGem]

Nope. When anyone dies, any outstanding debts must be cleaned up before the estate can be distributed to the heirs. If there is no estate or if the estate is not enough to cover outstanding debts, then creditors are generally paid on a first come, first served basis. The estate is probated and any creditors need to file a claim against the estate.

If you take money out of the estate before the bills are paid, then they can sue you. However, there are ways to structure one's assets so that assets pass to the survivor outside the estate.

[Sienna123]

I'm assuming through a trust.

[Sienna123]

The other question I have is this. While he is on the loan with this lady, it will make it now difficult if not impossible for him to qualify for another loan for us to buy a place I would assume. Any thoughts?

[ScottGem]

It depends on your combined income and other factors. But total indebtedness is a factor in rating loan risk.

[Sienna123]

Scott, I guess this is a moot point ad he didn't qualify. Seems he needed 2 years of employment with the same company before the mortgage company would consider putting his name on the loan. Not sure if it is just this mortgage company or now just a general rule.

[ScottGem]

Lenders are definitely tightening up on requirements.