Thank you Lauren, Patrick, and Mike. I appreciate your honest, experienced feedback.
I apologize for my delayed reply. Lauren, thank you for taking time to respond with such detail as well! As soon as I read your post, I took the long-shot and offered an abundance of documentation along with a detailed letter of explanation for the potential manual underwrite exception. I appreciate learning through your response.
Sadly, but as expected, the lender was not going for the exception. Upon further dialogue with them, I was informed that specifically for an assumption, their specific 'matrix' (for approval) does not allow for any late payments for a whole 24 months, not even just the 12 months required for a new mortgage. That was a hard 'no' for my circumstance. As you mentioned Lauren, even though I can prove that I never paid towards the home nor ever lived in it, they pointed out that I was still legally responsible for the payments. From their perspective, I can understand. If they have a paying client, why take the risk to allow someone else to assume it...
It's disappointing, but I'll see what I can responsibly do with a non-QM loan -- and continue to maintain my credit in the interim, of course.
Ultimately, I still take my accountability in the matter. ...though, I must add, it seems kind of 'criminal' in some way to go through all K-12th grades plus four years of college and an entire approval and signing process for the mortgage and STILL not be fully aware of the severity such a choice (as a co-sign) can be! Even years after the fact, when speaking with a few attorneys, not one attorney or lender (or website) at the time, told me, as a co-signer and co-owner, I can legally force the sale of the home. I only found that out a few years ago - and quickly moved on it, using it as leverage for an agreed sale.
...then, adding to it all, my choice to co-sign also disqualified me from 'first-time homeowner' grants. Although the fine-print reads, 'must not have owned your primary residence in the previous three years,' as soon as I shared that the mortgage was active (or active within three years), I was disqualified -- even after explaining (and offered to prove) that I had worked and rented my primary residence in a different state and never lived in the home for which I co-signed (and co-owned). I have never owned my primary residence, but no one would move forward with the grants after seeing/hearing about the mortgages.
I teach history at the high school level, for twenty-six years now. However, there's not a year that passes during which I don't share this story (in brevity) with my students, with the hope that they learn from my mistake. I also include few other finance lessons often not taught in schools.
At least the co-signed mortgage is now finally closed, for almost three months, and I now have to wait it out. I'm grateful that it is closed and that I have some flexibility with non-QM and hard money loans.
Lauren, Patrick, and Mike -- thanks again, truly!
