Recently, an email has been circulating with an invitation to a webinar on how mortgage and real estate professionals should consider expanding into the divorce market because (as the subject line reads) “Meet the target audience that doesn’t care about mortgage rates.” What a complete and utter mistake, not to mention total disrespect for the divorcing homeowner who may now need mortgage financing.
Family Law Professionals are getting inundated with mortgage and real estate professionals marketing their services to help their divorcing clients buy, sell, or refinance. So, while 65-70% of divorces involve real property, what these real estate and mortgage professionals don’t understand is that:
- Homeowners going through a divorce have options and aren’t some ‘easy to close’ group of potential clients based on their current situation.
- These professionals can make the situation far worse by not understanding the gravity of the case and the legal and financial implications that can happen because of a pure lack of knowledge.
- Divorcing Homeowners and their team of family law professionals are not some shiny new object to hold you over until the market shifts.
Divorce represents a massive transfer of wealth with substantial legal and financial implications. What may be available as a legal option during settlement may not be available as a mortgage option.
For example, if Jane is awarded a monthly equalization payment of $10,000 for five years, the perception is that she has a substantial income source. Equalization payments may or may not be considered qualified income to qualify for mortgage financing.
Even for seasoned mortgage professionals, divorce matters can be tricky. Handling the Equity Buy-Out of the marital home between spouses is misunderstood by many. The term “Equity Buy-Out” is misunderstood and incorrectly thought of as an actual mortgage loan when it’s not a type of mortgage product. This simple misunderstanding tells you that while a loan officer may understand mortgage guidelines, they don’t understand divorce.
Divorcing homeowners and their professional divorce teams deserve better.
As a divorce professional, you’ve seen firsthand the challenges homeowners can face when trying to determine what to do with the marital home. Integrating divorce mortgage planning into your case management should become second nature whether they choose to refinance or sell.
Recently, President and Founder of the Divorce Lending Association, Jody Bruns, presented to the Amicable Divorce Network on “What is a CDLP® and Divorce Mortgage Planning?” You can watch the recording of this presentation by clicking here.
WARNING: Who you work with really does matter!
Offered by the Divorce Lending Association, the Certified Divorce Lending Professional (CDLP®) program is the most recognized and comprehensive divorce mortgage planning training available in the mortgage industry. The CDLP® program is designed to prepare the mortgage professional as an expert on the financial aspects of divorce mortgage planning.
For many divorcing homeowners, the marital home and other real property may be their single most valuable asset. The role of the CDLP® professional is to address the unique financial issues of divorce concerning real property and mortgage financing to help divorcing homeowners make more informed decisions regarding their home equity solutions and home purchase opportunities.
How are you integrating divorce mortgage planning into your case management? This is what we do, and we do it every day!
Certified Divorce Lending Professionals know divorce. Certified Divorce Lending Professionals (CDLP®) are licensed mortgage professionals who have completed a comprehensive and rigorous certification program with ongoing continuing education and development in divorce mortgage planning. Their ability to expand their vision of the normal scope of the traditional mortgage professional is a great differentiator from those without training who have limited tunnel vision of client-to-application.
The role of the CDLP® is to support not only help the divorcing client but the other members of the professional divorce team through the 4-phases of divorce mortgage planning. They are creative thinkers who can provide clarity and value in helping divorcing homeowners make more informed decisions regarding their home equity solutions and divorce mortgage planning strategies.
And for all of us involved to provide a higher level of service to divorcing clients, we must acknowledge how the home can impact multiple facets of the divorce itself and life after divorce.
Involving a Certified Divorce Lending Professional (CDLP®) early in the divorce settlement process can help the divorcing homeowners set the stage for successful mortgage financing in the future.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.
Copyright 2023—All Rights Divorce Lending Association
