Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
Quitclaiming Your House to Your Ex-Spouse Could Tie Up Your Credit for Years
Your credit could be tied up for years if you quitclaim your ownership interest of the house to your spouse or ex-spouse. This could hurt you even if you maintain excellent credit. This future impact may be overlooked in a divorce agreement.
Credit Score and Debt Ratios are Two Separate Issues
There are two separate issues at play here;
The impact of your mortgage payments on your credit The debt load a future lender considers safe for you as a new borrower The Impact of Your Mortgage Payments on Your Credit
Even if your ex-spouse makes perfect payments on the mortgage, the debt will still show up on your credit report. The ex’s perfect payments will actually strengthen your credit without you having to pay a dime. If the ex doesn’t pay on time, it will hurt your credit score. Your lender doesn’t care about who bears the responsibility in the divorce agreement.
The Debt Load a Future Lender Considers Safe for You as a New Borrower
The mortgage balance will continue to show up on your credit report, which will hurt what is called your “debt ratios”. This may mean you have too much debt to be qualified for your ... more
Are you on The Rain? Grow Your Network!