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My partner and I decided to buy together a home two years ago. He is unable to meet his financial obligations, and is considering to declare himself in bankruptcy. I can continue paying for my share, but definitely cannot pay for his. Is there any way I can escape from this loan without having a bad credit history? Any tips in how to avoid foreclosure or bankruptcy?

I am thinking of purchasing my first home next year. My credit score is at 720 and my credit history shows no delinquency, bankruptcy or anything remotely bad. I pay my credit card balances in full every month and have never a balance of more than 20% of my credit card limit. The only problem I have with my credit history is, that it is too short. My two credit cards are only four years old and my only installment loan has been one car loan (one year). Will my short credit history hurt my chances of getting a mortgage loan (especially now that lenders are tightening requirements)?

6 Thoughts on Is there any way to scape bad credit history in a co-mortgage if my partner is unable to pay for his share?
  1. Reply
    Jennifer S
    February 19, 2011 at 9:30 pm

    Only to pay the loan in full.

    Other than that…maybe try to negotiate different terms with the bank.

  2. Reply
    Jason B
    February 19, 2011 at 10:28 pm

    Whn you both sign a note you are both 100% responsible for the payments. Even if your partner bankrupts you are still responsible regardless of other issues. There are many options out there at present for avoiding banruptcy. You should speak to your lender(s) and see if they might offer a deed in lieu of foreclosure, a shortsale, or a loan modification. These days banks are finally becoming flexible. Best toget started on things right away in these cases as once the “f” word appears on your credit you will have a great deal of problems buying a home for 2-3 + years.

  3. Reply
    Jennifer
    February 19, 2011 at 11:19 pm

    Hi,
    I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
    http://simurl.com/luwsoh

  4. Reply
    bud68
    February 19, 2011 at 11:58 pm

    Four years of a clean record is probably OK. Keep in mind that income and down payment are just as important as credit score.

  5. Reply
    versantly
    February 20, 2011 at 12:51 am

    direct this question to your mortgage lender.

  6. Reply
    Amanda
    February 20, 2011 at 12:56 am

    No, my credit history is about the same as yours, I’ve had a car loan for 3 years and I have 11 credit cards that I just keep open and don’t use. I only use my American Express card but very rarely. The longest card I’ve had is been for about 2 years. My mid FICO score is 703 and I was able to get a FHA loan with 100% financing.
    Best advice, save as much money as possible for a down payment and closing costs and don’t put anything on your credit cards. Sometimes mortgage lenders will run your credit report twice, once when you first apply and second right before you are about to close. If you go out and buy some furniture before you close, you might lose the loan or it might give you a higher interest rate.

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