Ok, I'm checking my report at MyFICO. They have no record of my past two mortgages. This isn't too surprising, since they are for a commercial property which I hold under an LLC. But now that I'm facing foreclosure, I can't imagine that it won't eventually end up on my personal credit report. Can anyone shed better light on this? Also, they list as a current mortgage the property that is now my ex wife's, which she refi'ed in jan 06. (We divorced in NOv 05.) How do I document that this mortgage is closed? They also list a gas card (Shell) which she undoubtedly still uses. Knowing that her credit is excellent, should I just leave that alone? I obviously don't use it, but maybe being on it might give me a piggybacking like benefit?
One of the main reasons you have an LLC is to protect your personal assets and personal credit. If you obtained these properties using your business credit profile and did not provide any sort of personal guarantee, then your personal credit should be protected. However, if the lender required your personal guarantee or a personal credit check to secure the loan, then you may run into problems down the road. Also, a divorce decree doesn't absolve you from any credit responsibilities. The original contract with the creditor trumps everything, so as far as I understand you'll have to work directly with the lender to have your name removed from anything you and your wife jointly signed. Since she did a refi in 2006, she should have gone through the underwriting process and qualified for the loan on her own. If that's the case, arm yourself with the right documentation to prove that and then work directly with the lender and credit bureaus to make sure your name is no longer associated with the loan. Also, if you're 100% sure she will never miss a payment, then don't worry about the other cards. But to be safe, I recommend you don't leave any lose ends.
Absolutely correct. If the joint mortgage is in fact closed, start by disputing it and stating that it is closed. It may well be that when they verify, the creditor will say it's closed and the entry will be adjusted. You don't want it removed, just marked as closed. And I agree about the Shell card. Leave it be. If it was a joint card you'd need to have your name removed if there's a problem. Some creditors do this rather easily, some make you reapply. But if her credit is good, she'll have no problem keeping it on her own. What's the rest of your report like? Do you have a card as old as the Shell card? What's your utilization?
