Many Loan Officers are not aware that you can use the VA Home Loan in conjunction with the owelty refinance during a divorce. This short video explains some of the details in this process.
To see all my other posts regarding the owelty in all it’s uses.
VA Mortgage Divorce Refinance/Owelty Refinance Facts
VA Mortgage Refinance– the maximum LTV (Loan to Value) is 90% on VA and is the same when refinancing the owelty and current loan.
Conventional rate and term– the maximum LTV is 95% in most cases and the same for when you are refinancing the owelty and current home loan
Texas Cashout– only allows you to go up to 80% by law, and most lenders will not lend the high.
kungphoo says
Are Things are the same in other states?
Brad Lynch says
You know, I’ve been asked that too many times not to know, so per your request for this detail, I’m contacting our ops manager and attorney to find out if the owelty is pretty common in the U.S. or just Texas. My hypothesis is that it is. Owelty is not a legal vehicle that was invented for the mortgage industry, but rather a way for a leaving spouse in a marriage to stake claim on a portion of the equity in the homestead. This acts just like a mortgage lien. If I have a lien on my home and someone comes to buy my house cash, for example, I can TRY to pocket all the cash, but in reality that title will not be cleared unless the mortgage lender on that property gives written release of liability. So, the leaving spouse actually is awarded those same rights…owelty is a “special warranty deed”.
Thanks,
Brad
Brad Lynch says
WELP, Mr Kungphoo, I was so wrong. It shows that experience in mortgage doesn’t mean you have experience in MORTGAGE LAW! 🙂 Here was the response from our attorney. First, your questions was, “Are Things the same in other states?”…the answer was “Other states don’t have owelty liens like Texas does. If an ex is owed money on the property, it would be a cash out transaction in states other than Texas to pay off that ex-spouse.”
Thanks,
Brad
Veronica says
This stuff just really makes my head spin!
Meli says
I’m glad you checked and found out that things are not the same in every state. Of course, that makes it rather confusing many times.
TERRY says
Really hard to go through a divorce and lose money – and a dual owned home.
Dov Shapira says
Very nice video, you made me smile, I felt like we met in person.
You really know your stuff
Tom's Foodie Blog says
I have never heard of owlety or the concept of a marriage lien. This was very insighful.
Irene says
Wow Brad I really like your follow up to Phoo’s question. That really shows you are on top of your game. I would go with this kind of customer service in a heart beat!!
Jamie-Stacie Markham says
Theres nothing easy about a situation like this and Im sure thos makes it even more difficult.
MELISASource says
Good information for those who live in that area
Casey Gardner says
I hope I’m never in this situation, but that is very good information to know. Thank you for sharing with such detail.
Lawanna says
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I’m going to recommenhd this web site!