Mortgages and Child Support

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tictacjunkie Members Profile Find Members Posts Senior Member Joined: 30 April 2010 Points: 2278	Post Options Post Reply Quote tictacjunkie Report Post Thanks(0) Quote Reply Topic: Mortgages and Child Support Posted: 25 May 2012 at 5:19pm
	Hi, I've posted this in single parenting but thought it'd be more visible here. A friend of mine has separated from her husband and is wanting to buy him out of their family home. She was initially told yes by her bank based on her income being child support, her wages and her WFF payments. The bank has now said they won't approve the mortgage as the child support isn't guaranteed (despite initially saying it would and there is a separation agreement). Her wages and WFF are enough to cover the mortgage repayments without the child support. The bank's suggestion was that he remain on the title, which isn't an option. So, has anyone else been through similar and found a bank that will loan to someone in a similar situation? Or has anyone gone down the route of leaving the ex on the title but meeting all the mortgage payments by themselves? Any ideas? Thanks in advance.

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luvmylittlies Members Profile Find Members Posts Senior Member Joined: 08 July 2009 Location: Auckland Points: 4140	Post Options Post Reply Quote luvmylittlies Report Post Thanks(0) Quote Reply Posted: 25 May 2012 at 7:30pm
	When we got our mortgage they wouldn't take into account my WFF payments because they consider them non predictable or something. eg if the government change their policy it could be less/gone etc. Child support is probably even less certain (he might have an agreement but that doesn't mean he'll pay up) so it doesn't surprise me they won't take it into consideration. Totally sux though. NO WAY would I leave ex on the title. Then it's still his!
	Adoring Mum to Talisin 8/9/11 and Kiara 18/01/10

Shelt Members Profile Find Members Posts Senior Member Joined: 17 May 2008 Location: Tauranga Points: 1181	Post Options Post Reply Quote Shelt Report Post Thanks(0) Quote Reply Posted: 25 May 2012 at 10:00pm
	I've just answered your post in the single parenting thread but if you want to know more just PM me. My journey to getting the house settled into my name took just under 2 years and I was denied by the bank 3 times before they finally came to the party. One of the times they denied me they told me that there was no way they would lend to me because I was a young single parent and therefore a bad risk - despite the fact they had already lent to me as part of a couple, I was paying the mortgage by myself from date of separation and I have a stable job. Its worth keeping on trying, eventually I found a sympathetic mortgage manager who worked out a solution for me. And it ended up counting on my side that I had paid the mortgage by myself (despite the ex's name still being on the title) for so long. I hope for your friend's sake that it works out for her.


tictacjunkie Members Profile Find Members Posts Senior Member Joined: 30 April 2010 Points: 2278	Post Options Post Reply Quote tictacjunkie Report Post Thanks(0) Quote Reply Posted: 26 May 2012 at 2:16am
	Thank you Shelt, I'll pass that info on to her. She's been in contact with a mortgage broker this evening so hopefully that helps. Biggest nuisance is that the bank said it would be fine, it's been quite a gamble for her, one she thought she was taking with the right advice- if you can't take your bank manager's advice there's a bit of an issue! Her ex-dh wants his money asap so she's under huge amounts of stress. Thesaff- her bank told her they would include WFF and child support as income, then back-tracked. The stupid bit is that they're effectively saying they don't trust him to keep up his payments, but they do trust him enough to be liable for the mortgage. I wonder if perhaps she could put her parents on the title instead of leaving him on it. It doesn't make sense to pay him his bit of the little equity they have and then still leave him on the title! Oh well, we shall keep our fingers crossed for her. Rent would be higher than mortgage payments so on a purely financial angle this is the best option for her and the kids.

redtulip Members Profile Find Members Posts Senior Member Joined: 24 July 2011 Location: West Auckland Points: 697	Post Options Post Reply Quote redtulip Report Post Thanks(0) Quote Reply Posted: 27 May 2012 at 9:47am
	Definately worth asking her parents to become joint owners with her, especially if they own their own home or only have a small mortgage on their own property. They may even be able to act as a guarantor for her without having to be on the title. If she is paying the mortgage alone now then there would really be no risk for her parents and also means she wouldn't need to leave the ex on the title - especially if he's expecting to be paid out his share of the equity! Would just need to ask the bank what would be involved.
	5 wee Angels - Always in our hearts - Aug '11, Feb '12, Aug '12, Feb '13, Aug '13

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