Hey,

I heard a ncp at work say that the bank deducted his CS from his income when they considered him for the loan. Is this true?

It sounds like it should be illegal...I mean, they don't deduct income for the kids of married couples, do they? I don't remember mentioning my son when I got my loan...I dunno though.

What about cp's with significant child support? Do the banks consider that as income when approving loans? I dunno...in that case, it sort of makes sense (businesswise for the bank), is best for the child, and really does hurt the ncp.

I'd like to know some experiences that other people have had, however...especially with numbers...

Later,
Bobby

Yup. It's true. AND if a CP brings in a copy of the court order for CS, they will count it as income when calculating an approval figure. Regardless if the CS payment is received monthly or not. I brought my court order in, and got a higher approval amount, but Jack's dad is closing in on $30,000 in arrears.

It doesn't matter if the CP actually receives the CS, the banks only care about the court ordered amount. And it doesn't just pertain to mortgages, Personal loans, car loans, refinances...

It's stupid.

Yep all true, ain't it crazy

I've seen it on several forms since my divorce, sorry can't give specific numbers lol ... but - it does appear they consider CS as income for the receiver and as an expense for the payee. Since I do not pay or receive any child support - I always leave it blank. (In the process of getting student loans, so I ran into this one yesterday).

What about married people...are they allowed to subtract some income for couples with kids? Is there a law about it?

I don't think so, but they can combine incomes on an application.

Hmmm...I'm trying to find a way to look at all this so that it makes sense...

Lol...you know, the explanation is probably because after trying different stuff for decades, banks found this is the way they make the most money. Businesses seem to make rules like that...

They also include CS as income when going to get state assistance.... again, whether the checks arrive or not.

No doubt, CS that never arrives should NOT be considered income .. sheesh ... another fine example of our system. *shakes head*

lol...well, in the case of getting a mortgage, counting CS that never arrives works for us and against the bank...maybe we should keep that mistake...

When I got my mortgage they asked about CS, I said I want 0 put down since that is not income I can count on to pay my bills. If I had put down what I was suppose to get I could have gotten a larger mortgage but would have had a hard time paying it since I don't actually get that money.
Another thing since X is sooo far behind, it shows up on his credit report stating an unpaid debt, making it harder for him to get finianced for anything.