Why have a diverse divorce team?

Mar 01, 2021

Why diversity is good.

A professional divorce team has a range of team players including the attorney, financial planner, accountant, appraiser, mediator, and yes, a divorce lending professional. Every team member has a significant role in ensuring the divorcing client is set to succeed post-decree.

Diverse skills allow the divorce team to think about a specific problem in a different, and often more strategic, way. By being able to look at a problem from different angles and draw on a wealth of experience and knowledge from all team members, allows for innovative and creative solutions.

 1 – Diverse Teams Fill In The Knowledge Gap | The reality is that no one knows everything. Teams solve problems faster when they’re more cognitively diverse.

2 – Diverse Teams Fill In the Perspective Gap | Perspective is the capacity to view or think about a situation or problem in a wise and reasonable way.

3 – Diverse Teams Fill In the Experience Gap |...

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Where does a CDLP™ fit into the mediation process?

Feb 22, 2021

Where does a Certified Divorce Lending Professional (CDLP™) fit into the mediation process?

Mediation is a process in which a third person helps the participants in a dispute to resolve it. In order to resolve the dispute, the participants must negotiate a solution. Problem-solving is part of the negotiations. The process of mediation is the management of other people’s negotiations, and the mediator is the manager of the negotiations who organizes the discussion of the issues to be resolved. The more coherent and organized the process, the easier it is for the participants to arrive at solutions that are mutual and appropriate for them.

At the center of the mediation process is gathering the data (fact-finding), defining the problem, and developing options. When the subject matter is specialized as in negotiating the marital home, the cycle becomes specialized and may require the need for mediation support from a Certified Divorce Lending Professional (CDLP™).

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The Professional Divorce Team

Feb 15, 2021

Collaboration | Working together to achieve a goal. A recursive process where two or more people or organizations work together to realize shared goals.

It takes teamwork to bring the typical divorce settlement together. There are usually quite a few people involved from divorcing clients, attorneys, financial planners, mediators, real estate agents, appraisers, and mortgage professionals.

One of the most important team members in the collaborative divorce process is the financial neutral. The financial neutral is an impartial expert in his or her field. When a primary asset of the marital property is the marital home and other real estate assets, having a Certified Divorce Lending Professional (CDLP) as a financial neutral on your team becomes increasingly desirable. 

In many divorce settings, negotiations break down over financial issues or concerns, oftentimes leading to litigation. The CDLP is a financial neutral who offers both parties a balanced, thorough financial...

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Buying A New Home When Tied To The Mortgage On The Marital Home

Feb 08, 2021

One of the main concerns, when one party is retaining the marital home, is that the vacating or out spouse will not be able to qualify for future mortgage financing while their name remains tied to the current mortgage. This isn’t necessarily so and we can help our divorcing clients with this issue with the correct verbiage contained in the final divorce settlement agreement. 

When a borrower has outstanding debt that was assigned to another party by court order (such as under a divorce decree or separation agreement) and the creditor does not release the borrower from liability, the borrower has a contingent liability. The lender may not be required to count this contingent liability as part of the borrower’s recurring monthly debt obligations.

Contingent liabilities are debts that a court orders one party the responsibility of paying yet does not relinquish the legal obligation of paying the liability to the creditor. In a divorce situation, often times a mortgage...

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Avoiding Hurdles with Mortgage Financing in a Divorce Situation

Feb 01, 2021

Divorce and mortgage financing concerns are often a touchy subject in divorce situations. Particularly when one spouse is dependent upon income awarded from the divorce for mortgage qualifying purposes and also when contingent liabilities are present, such as a jointly held mortgage on the marital home.

Having a basic understanding of how lenders look at the different sources of income awarded in a divorce settlement as well as how joint and contingent liabilities are handled can help you better serve your divorcing clients who are concerned with the ability to obtain mortgage financing post-decree.

Avoiding hurdles with mortgage financing in a divorce situation is easier when you have a better understanding of the potential challenges your divorcing clients may face when obtaining mortgage financing.

Income vs. Qualifying Income

Often times in a divorce and mortgage situation there are various types of income to consider: Employment Income; Alimony/Maintenance Income; Child Support...

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Jen Du Plessis joins the Divorce Lending Association

Feb 01, 2021

Jen Du Plessis is joining the Divorce Lending Association as the CDLP Business Coach!

Jen Du Plessis believes that you can Live your Legacy while building it! That when you work on purpose you can play with passion. 

As America’s Mortgage Mentor she guides mortgage and real estate sales professionals who are overwhelmed in their daily routines and feel like they are sabotaging their personal lives for the sake of their business.  Jen mentors them to multiply results in record time while having the courage to say YES to their personal lives!

 During 15 of her 37-year career in the mortgage industry, Jen has been listed in the top 1% of loan officers nationwide; spending 3 years in the top 200 nationally ranked originators, and has funded over $1 Billion in mortgage loans.

She is recognized as an Influencer in her industry as a #1 Amazon best-selling author of LAUNCH-How to Take Your Business to New Heights; Host of two podcasts – Top Ranked Mortgage...

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The Biggest Frustration of Refinancing the Marital Home

Jan 25, 2021

What's one of the biggest frustrations when refinancing the marital home during a divorce? The timeframe in which it can be done!

Obviously, everyone involved wants the refinance of the marital home to be done as quickly as possible. The frustration is that depending on the borrowing spouse's financial situation; it might not be that easy.

When the borrowing spouse needs to use spousal support and/or child support to meet the income needs for refinancing the marital home, the lender needs to meet certain requirements. We call it the 6/36 rule - 6 months receipt of income and 36 months continuance. 

Nobody wants to wait 6 months to refinance the marital home, and the other spouse doesn't want to wait 6 months to receive their equity share either! So, how can we make this easier?

Temporary Orders!

If the need to refinance the marital home once the divorce is final has a deadline, for example, the settlement agreement gives a deadline of 90 days – there may very...

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What is a Successful Divorce?

Jan 18, 2021

A successful divorce settlement is a result of putting the pieces of the puzzle together in such a manner that both divorcing parties come out of the divorce whole or at least on the road to recovery. But how do you get there?

Divorce and mortgage financing concerns are often a touchy subject in divorce situations. Particularly when one spouse is dependent upon income awarded from the divorce for mortgage qualifying purposes and also when contingent liabilities are present, such as a jointly held mortgage on the marital home.

Having a basic understanding of how lenders look at the various aspects of divorce can have a significant impact on the success of the divorce when real estate and the marital home are front and center. The timing of the divorce filing, sources of income awarded in a divorce settlement as well as how joint and contingent liabilities are handled should be addressed with the help of a Certified Divorce Lending Professional to better serve the...

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When Access to Mortgage Information is Denied!

Jan 11, 2021

How does the spouse who is awarded the marital home yet is not on the current mortgage gain access to information about the current mortgage? This isn’t as easy as you may think!

We all know that often only one spouse is on the current mortgage to the marital home. A mortgage is a legally binding contract, separate from a divorce decree. The original agreement between the lender and consumer cannot be modified by the court. 

So what happens when the spouse who is awarded the marital home isn’t on the current mortgage and has no plans to refinance the home immediately into their name? The spouse becomes what’s known as a Successor of Interest.

Successor Homeowner’s Right to Information | Another sticking point for divorcing spouses who are awarded ownership of the marital home and who are not currently obligated on the existing mortgage is the hurdle of obtaining information on the current mortgage.

Two important sets of CFPB amendments to its RESPA and...

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Minding The Mortgage After Divorce

Jan 04, 2021

Although the Divorce Decree may determine who retains ownership of the marital home after the divorce is final, it is important to understand that the Deed, Decree, and Debt are three entirely separate issues to settle.

The Deed & Transferring Ownership | Transfer of ownership can simply be done with a Quitclaim Deed or other instrument. When both parties are co-mortgagees on the mortgage note, there is typically no further action needed when retaining the current mortgage as-is.

However, it is important to take action and notify the current mortgagor of the ownership transfer to avoid an acceleration of the mortgage due to a transfer of ownership when the party who is retaining the home is not obligated on the current mortgage note.

 

The Garn-St Germain Depository Institutes Act of 1982 protects consumers from mortgage lenders enforcing the due-on-sale clauses of their mortgage loan documents when the transfer of ownership includes transfers to a spouse, or children of...

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