Mortgage co didn't add us as co-signers to mortgage (loan, approved, credit card)

[mrs1885]

Are we just screwed?

My husband and I pretty much went bankrupt in FL. Long story starting with the housing boom which caused our rent to skyrocket, ending with the end of his career due to a medical disability.

Flash forward to us looking to move to a more reasonably priced area. We found middle TN, came up for a visit, found a home and signed the contract. My in-laws offered to co-sign for the mortgage.

I pulled our credit report a year ago and found that we're not showing up on the loan for the house. Under normal circumstances I really wouldn't care, but we're trying to use the purchase of the home to help us get our credit back on track. And to make matters worse we purchased a fixer upper home to keep the payments low. We figured it would give us a couple years to get settled in and start chopping away at that old debt and then we could re-fi and hopefully cash out a bit of equity to do some of the bigger projects - kitchen reno or bathroom reno or master bath additional square footage, etc.

We finally have gotten back on our feet, hubby's disability was approved and we've been paying back all that old stuff. I've been making extra payments to the principal of the loan for the last 18 months. We pulled the credit report to see where we stand because we were going to go to the electric company and do the paperwork to have central heat and air added to the house and the payments made back through them. Just seemed easiest. But then we find out we're not on the loan, so the only thing showing is all that old debt and hubby's medical bills and his car loan.

Now, the car loan is paid every month on time, never late even once. We're just now starting to make monthly payments on the old debt. And his medical bills are over 250k right now and he's in the process of going in for another surgery. So, while we're making payments, it's not been long enough to get the FICO score up enough to qualify.

I called the mortgage company late last year and explained what happened and asked if it could be corrected, to have us added on the mortgage. They sent me a paper to fill out saying that he and I would be added and his parents names would be removed. After 3 years or 5 years or something like that they would officially be completely removed if we'd not been late on the payments. Cool!!

But I lost it. Argh!! I could have sworn I'd left it in the organizer in my car but it's not there. I've torn the house and the office apart and just can't find that paperwork anyplace. So I called them again and admitted that I had a ditzy moment and asked them to send it again. They had me fax them a letter asking to assume the mortgage. I did and today I get a packet in the mail saying we need to fill out the loan papers and send them $900 to assume it.

That's not what they sent me last time. I'm not sure if they would have sent it after I returned what they sent me last time or what. So now I'm not sure what to do. I mean, we were on the original credit app and the paperwork for the house. We are on the deed to the house. We just need to get on the darn mortgage. We've made payments on time plus extra for 3 years now and I'd like some credit for that! Is there any way to fix it?

BTW - I'd like to add that we don't believe in taking out tons of credit. I do want a good credit score, but we try to not use it unless we need it. The only reason we have a loan on hubby's vehicle is because of his disability. We couldn't buy just any vehicle; we needed one that worked for him and his situation. My car is hideous, but paid for. We don't have credit cards or gas cards or cards from stores. We're trying to pay for as much as we can in cash. And I'd not worry as much about the CHA but our electric bills in the winter get up to $660 a month. I'm kinda getting sick of that!!