of course you can purchase a property as "your sole and seperate property" even when you are married.

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�The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.� -Michelangelo

MoodBoost Drink : Mood Support + Energy.

Yes, I have been down that road and it has been no big deal with my wife and I. After we got married I purchased our first house without my wife on the mortgage and then purchased the second one with her on the mortgage. The bankruptcy really wasn't an issue, we qualified with or without her income and it didn't change our rate either way. We a have also refinanced a couple od times as well and it was also no big deal.

My advice to you is the main thing to be concerned about is what lead to her bankruptcy? That is the issue that I you really need to understand and be comfortable with her answer. Everything else is workable.

On a loan document you only have to report what you want so you can leave her off and she will not be considered. They will just treat it as you buying a house. I don't think it is a deal killer unless the BK is due to out of control spending and it continuing.

Now that's funny!!!

I give her large points for disclosing the BK at this stage in your relationship.

If you buy the house seperate, under your name alone, you can still execute a deed giving her right of survorship if something should happen to you. Also, you want to make sure your will is updated to account for the property.

Call me a cynic, I don't really care. Here's my .02: Don't do it. You're blinded by the relationship and not seeing something that will affect your life for a long time. Do you want to be stuck with a higher than normal interest rate just because your intended isn't credit-worthy?

If you are that serious and want to go through this consider the following 1) Get a lawyer to draw up a prenuptial agreement 2) Get the mortgage in your name 3) Separate accounts; no ifs, ands or buts. If this "awesome person" is okay with that, she must be okay. 4) Find a reputable mortgage 'broker' and let them do the grunt work with all the information (1-3) in hand.

You've worked doubly hard for a great FICO score, don't F it up over something which you have control.

Feel free to PM me as I watched two very good friends of mine suffer from precisely this game. Neither relationship lasted beyond 4 years.

- kd

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kestrel driver


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I don't know the answer to your question, but make sure there aren't any wrinkles if you live in a community property state like Texas. I do know that there are ways to acquire and maintain separate property in a community property jurisdiction, but it's not automatic.



Oh, and that "it is not necessarily a deal killer" is very romantic. I'd have wanted to jump into bed with you right then.

Sorry, I should have put one of those ":)" at the end of my sentence. I was just giving you a hard time. Of course this is a relevant topic in a relationship.

A girlfriend with a bankruptcy won't affect you. A WIFE with a bankruptcy will affect you. Financial institutions will consider your wife's financial history regardless of whether you try to take the real estate as separate property or not. The bank knows that your ability to pay off the home is directly related to your wife's spending habits. There is an increase chance of default of the loan if the wife's debt (separate or community property) is unmanagable.

On a related note, it is nearly impossible to get and keep the real estate as separate property. You might be able to get the wife to sign off on a deed that the real estate is your separate property. The problem is that you are paying off the mortgage with community property assets (your paycheck). You can't get an enforceable agreement that the house will remain your separate property. If you pay off the loan with community property, a portion of the house because community property. The courts won't allow a man and a women to sign away all of their community property rights--it would negate the system of 'community property'. That is why prenuptial agreements have limitation.

Depends. How long ago did this happen. Bankruptcy is wiped off your credit report completely after seven years in Canada. I assume it's probably about the same in the US?

I've seen people get home loans/credit cards/car leases after just three years, but have to pay higher interest rates. This will only happen if they have they have good jobs and/or viable businesses. It'll take some work to find a sympathetic loaner but it can be done. You may have to look beyond banks and go to private mortgage companies, etc. Once the seven years is up you can then likely refinance at the normal rates. In fact a friend of mine did exactly this.

Her rating won't effect yours in any way. It will make a difference if you have to co-sign together because she has no credit rating. This means they will usually base every financial decision on your credit rating only for a house loan. If she's gone bankrupt but is making a 100K a year salary then they might be a bit more understanding.

You can buy as an individual even if married. Just put the house in your name and have her sign a waiver that she will not try to get part of it if you seperate. Talk to a lawyer about this one.

Sorry, I misinterpreted. I thought you might be co-signing together as you needed two incomes to swing the deal.

"My advice to you is the main thing to be concerned about is what lead to her bankruptcy? "

The main cause of bankruptcy in the US is health care costs. In Canada we have government health care so our biggest group to go bankrupt are those who go through nasty divorces. Like they say - it's only lawyers who come out with money in divorce court.

People who have their own businesses get hurt in recessions, employees get laid off, etc. Bad things happen to good people and sometimes bankruptcy is the only way out.

I'd be more concerned if she was a frivolous spender, failed to pay the IRS or something like that. But then most times people learn from their mistakes.

Read in an article in Fortune magazine that the average self made millionaire has been bankrupt 2.3 times.