Alright all you geniuses out there. My wife wants another house, so I will temporarily be the proud owner of three temporarily. I know I can call Audi FS, but I assume this is a question they rarely get, so I’ll ask you all. I owe some insignificant sum of money for remaining payments on my Audi lease. (around 8k).
While I don’t need a lecture on what happens if I total the car, I wanted to see if I ship Audi a payment for the remaining payments that they’ll update my credit report to show account paid in full with no monthly balance owed? I’m just clearing the deck as I pursue my third mortgage and want one less thing for the loan officer to whine about. It’s a little tighter than I’d prefer before we offload one of the others relative to paper income. To be clear, I will be keeping the car until maturity, but I’m hoping this hits the credit report like a one-pay lease by doing so, and it shows zero monthly payment owed even though I’ll have the car for awhile longer. Thanks all.
hi there for what it’s worth, i just sold my audi to a private buyer and paid off via audi FS around end of Nov. my balance is still open on my credit. not sure if they are backlogged or what the turn around time is for that usually.
A front-line AFS phone rep will not be equipped to answer questions about their credit-reporting procedures, nor likely will supervisors.
I dug this up last year in response to a similar question, although please note that originating mortgages isn’t how I make a living.
Obviously Fannie Mae isn’t the investor on every mortgage, but many investors have similar themes across various topics in their underwriting requirements.
If you aren’t on the bleeding edge of DTI requirements, the new mortgage company won’t care if you’re leasing 31 cars.
That’s an interesting question, maybe someone will be along with direct experience, but I could see it reporting something wonky like still showing your monthly payment amount but with an account balance of $0.
You still have the bank’s asset and the account is still open so something will be showing.
And as trism mentioned above you could probably call AFS 10 times and get 10 different answers, your basic phone rep isn’t going to have a clue.
I’d be inclined to discuss it with your mortgage banker first before sending $8k off to AFS in hopes that it dissappears.
I think a lot of this is dependent on the lender. I had one insist that they had to count the monthly payments on two GM One Pay leases but another who did not. If you were able to document the paid off balance to an underwriter it might not be an issue.
I’ve had experience with this recently - most Fannie / Freddie lenders will still count the lease in your DTI. The only way for it to not count is being closed and paid in full or transferred to someone else completely
You can do it but probably take up to 60 days. The Best way to get around this is to tell your banker that Audi is a “business” vehicle and payments come from the business account, not your personal. I had to show this when we bought our house and underwriter said no problem and removed it from DTI
Now if you don’t have any business at all, then you got to hope for the best that Audi shows a zero balance before closing. I am sure Audi can give you a zero balance letter also prior to hitting credit
Audi you can’t transfer without liability. Even if I took over his lease, it will still show on this credit until it closes
I’ve been a mortgage “optimizer” for decades. As someone else said, it does depend on the lender and sometimes the underwriter at a lender.
While you cannot get the lease removed from your report, you can supply the UW with proof that all payments have been made. They should be able to remove the payment amount so it doesn’t affect your DTI. To be even safer, send in separate payments (8 payments x $1000 instead of an $8000 check) and label each one for the monthly payment for which it applies.
This scenario should be relatively easy to address. I’ve got other scenarios that are way more confusing to underwriters. 
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.