Are you currently going through a divorce and need information on refinancing your mortgage or buying a new home once the divorce is final? Being educated about divorce mortgage planning can benefit both you and your spouse. It shouldn't be one-sided.
Often conflict arises out of a lack of knowledge. When you take the time to learn, you take control of your situation and divorce mortgage planning so you are in a stronger position to negotiate while removing conflict and unrealistic expectations.
For most middle-class families, their home is their largest asset. While homeownership certainly has its perks, a mortgage can present problems if you decide to end your marriage.
Regardless of what your divorce agreement says, the law clearly states that both spouses are liable for the mortgage if their names remain on the loan. Even if the marital settlement agreement says your spouse is responsible for the mortgage, the bank can come after you if they miss a payment and your name is still on the loan. This means you’ll generally need to either refinance the mortgage in one person’s name or sell the house and split the proceeds. Working with a Certified Divorce Lending Professional (CDLP®) can help you determine the best way to move forward.
Working with a Certified Divorce Lending Professional (CDLP®) during or after divorce can be highly advantageous. Here are several reasons why:
- Expertise in Divorce-Related Mortgage Matters: Divorce-trained mortgage professionals, such as Certified Divorce Lending Professionals (CDLP®), have specialized knowledge and training in the intersection of mortgage financing and divorce proceedings. They understand the unique challenges and considerations involved.
- Alignment with Legal Process: Mortgage professionals with divorce training can coordinate effectively with divorce attorneys, ensuring that the refinancing process aligns with the divorce settlement and court orders. This helps streamline the legal and financial aspects of the divorce.
- Customized Mortgage Solutions: These professionals can offer tailored mortgage solutions that cater to divorcing individuals' specific needs and financial situations. They may explore creative financing options to make homeownership feasible for one party.
- Protection of Homeownership Rights: A divorce-trained mortgage professional can help divorcing homeowners protect their rights. They ensure that both parties fully understand their options, rights, and obligations related to the marital home and mortgage financing.
- Mitigation of Financial Risks: Divorce-trained mortgage professionals are skilled at identifying and mitigating financial risks associated with mortgage decisions during divorce. They can help divorcing homeowners make informed choices that minimize financial vulnerabilities.
- Long-Term Financial Planning: These professionals assist divorcing homeowners in crafting long-term financial plans that consider housing costs, mortgage terms, and financial stability post-divorce. This planning aims to provide a solid financial foundation for the future.
- Emotional Support and Sensitivity: Divorce is emotionally charged, and divorce-trained mortgage professionals approach their work with empathy and sensitivity. They understand the emotional toll that divorce can take and provide reassurance and support to divorcing homeowners during this challenging time.
- Communication and Coordination: They facilitate effective communication and coordination among all parties involved in the divorce process, including the divorcing spouses, attorneys, mediators, and financial professionals. This ensures that mortgage-related decisions are made with full consideration of the broader divorce context.
- No Consultation Fee! A CDLP® does NOT charge you a consulation fee when working with you during your divorce settlement. As licensed mortgage originators, they are compensated by their employing brokers/lender upon the successful close of a mortgage loan.
In summary, working with a divorce-trained mortgage professional when refinancing the marital home or selling and purchasing a new home can help divorcing individuals confidently navigate the complex intersection of mortgage financing and divorce. A CDLP®'s expertise, ability to protect homeownership rights, and focus on long-term financial planning can significantly benefit those going through this challenging life transition.