Need Advice - Could I get a new loan in my wife's and father's name?

[strem16]

Hi to all, Happy New Year!
This site has been a savor for many questions that I had going through my house situation. I am currently going through a short sale with Citi on a house in only my name (bought it before I got married). They are reviewing still since November, our close date for the buyers is Jan 31st. Citi put me on a forbearance agreement while my short sale was being processed and it ruined my credit due to Citi reporting to the Credit bureau that I am late on all my payments since Oct. My wife and I need to relocate do to work and I am trying to find the best way to get another mortgage. My wife doesn't make a lot of money so we don't qualify for much. My realtor talked to me about getting an adjustable rate mortgage in my wife's and my father's name, then doing a streamline refinancing after 6 payments in order to get my father off of the loan. Can anyone give me more information regarding this process if it exists? Do I have any other options?

[Erik Sandstrom]

Hi to all, Happy New Year!
This site has been a savor for many questions that I had going through my house situation. I am currently going through a short sale with Citi on a house in only my name (bought it before I got married). They are reviewing still since November, our close date for the buyers is Jan 31st. Citi put me on a forbearance agreement while my short sale was being processed and it ruined my credit due to Citi reporting to the Credit bureau that I am late on all my payments since Oct. My wife and I need to relocate do to work and I am trying to find the best way to get another mortgage. My wife doesn't make a lot of money so we don't qualify for much. My realtor talked to me about getting an adjustable rate mortgage in my wife's and my father's name, then doing a streamline refinancing after 6 payments in order to get my father off of the loan. Can anyone give me more information regarding this process if it exists? Do I have any other options?

Not to discredit your realtor but you may want to get an opinion from a lender. This is what is considered "Buy and Bail" which lenders scrutinize files very rigorously due to many scenarios similar to this. With an FHA loan you will have to pull both you and your wife's credit for the new loan even though you don't want to be on the loan. When they see the short sale on the credit report it's very clear that it's buy and bail. I have a scenario very similar to this where husband and wife own a 7-11 and the past couple years the wife has been on salary of 25K/yr (very tough to qualify for a loan with this income). What we are doing is upping her income level as manager to 60K per year and purchasing a property as investment with 20% down. Been working on that file for about a year now.

The realtor is correct about the streamline - you can do a FHA streamline refinance after 6 months.