Wednesday, November 12, 2008

Borrower is Separated from Their Spouse - Does All Debt Count Against Them?

If a borrower is separated from their spouse, an underwriter will require a separation agreement in order to determine which liabilities each spouse is obligated to pay, and also to determine if any child support or spousal maintenance is involved.

If a formal (legal) separation agreement does not exist, some lenders will approve the loan if both spouse's liabilities, including the housing expenses of both people, are counted in the debt ratio.

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