Avoid a Housing “Crisis” - Plan Now for an Equity Buy-Out Later Certified Divorce Lending Professional
One of the main issues to consider early in the divorce process is what to
do with the family residence. Often one party wishes to buy out the
other’s equity in the property. Before any agreements can be reached, it
must be determined if the “buying” spouse can qualify for a mortgage in
his or her name.
Avoiding a Contempt of Court Issue
A Contempt of Court issue when a former spouse fails to execute their
obligations in the marital settlement agreement (MSA) with regards to
real estate and mortgage financing can be avoided if the right steps are
taken in advance. There are many times when mortgage financing is a
requirement post-decree, whether it involves refinancing the marital home
to remove a spouse from the current mortgage, completing an equity
buyout, or even for the purchase of a new home for one or both parties.
Oftentimes the successful execution of mortgage financing requirements
in many divorces fails, not because of a lack of effort on behalf of the
divorcing parties, but rather on other details within the marital settlement
agreement. The two most common reasons divorcing clients are unable to
successfully obtain mortgage financing have to do with qualified income
and credit. The best way to avoid these issues is to consult with a qualified divorce lending professional during the settlement process rather than
after the martial settlement agreement is final—this can make a big difference in ensuring the successful execution of the MSA and avoiding a
possible Contempt of Court issue.
Let’s take a look at the common income and credit issues that can prevent
a successful mortgage transaction.
Dawn Connors
(586)254-5711
dsymington@mortgageone.com
Company NMLS #129386
NMLS #102706
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