One of the biggest decisions divorcing homeowners face is what to do with the marital home and real property. Trying to agree on how to handle the mortgage and the home can be a challenge without proper direction from a Certified Divorce Lending Professional (CDLP™).
The options available depend on a number of factors, such as how the property was financed and how ownership is currently held. Additional factors to take into consideration include the disposition of property, the amount of equity available in the property, and the income sources available for the borrowing spouse.
There are many common mistakes made during divorce when working with a mortgage professional who does not fully understand the implications of divorce and the opportunities to help the divorcing homeowners with their mortgage financing. Two of the more common mistakes made are as follows:
Mistake #1 - "If the couple has equity in the home, the spouse keeping the house should apply...