Owelty Mistakes During Divorce or Splitting/Buying Out of Trust
The Owelty Refinance during divorce or buyout and split of a Trust is not so tricky of a process if you know what you are doing and take the right steps. I do them all the time for clients as a Loan Officer in Texas and it’s more simple than it sounds. You just need someone that understands it to explain it to you. If you and your spouse are considering divorce and/or just got divorced, it is a good idea to read these quick 5 mistakes.
1. NOT MONITORING JOINT ACCOUNTS AND PAYMENTS COMMON DIVORCE MISTAKE
Often times someone may forget that a credit card is actually a joint account because one party or the other has been used to using that card exclusively. Knowing exactly what accounts report on your credit report is important during and after the process of divorcing. Of course, timely payments on one’s own accounts is obviously important. One late payment can ruin or delay chances at mortgage financing and can initiate a downward spiral of credit scores.
2. QUALIFYING OR DISQUALIFYING A POTENTIAL BORROWER FOR OWELTY REFINANCE
Many times parties will sit around a negotiating table and rely on inaccurate information and think any bank would be happy to have that loan or, the opposite that there’s no way in the world he/she can get financing. No one except a competent *Divorce-Mortgage Specialist can make that determination. Additionally, guidelines that applied a mere few weeks ago may not still apply. Just because a borrower got a loan before does not guarantee they will get one presently or in the future. New rules (especially ones enacted in 2008-2009) require more than just a good credit score or good income or good assets. Most often, parties disqualify someone by assuming that they cannot “afford it.” Many times, we have structured a solution that leaves the borrower in a better budget situation (with lower monthly expenses) even after financing a buyout to their ex-spouse. One must get the specialist involved as soon as possible so that all parties are working with reliable information.
3. GOOD FAITH AGREEMENTS THAT ARE DOCUMENTED POORLY OR NOT AT ALL
Child and spousal support is often constructed informally. For example, during the process of divorcing instead of paying support, a spouse may often agree to make payments on certain accounts that will ultimately be assigned to his/her spouse. Such “income,” if needed to qualify for a mortgage loan, must be structured and documented in a very precise manner. A *Divorce-Mortgage Specialist can recommend the proper method and assure a potential borrower is prepared for mortgage qualifying.
4. WAITING TOO LATE TO APPLY AND QUALIFY FOR THE OWELTY MORTGAGE
It may be tempting to procrastinate or even assume that there will be no problems given previous mortgage qualifying. There is nothing to be gained and much to be lost by waiting. As soon as someone contemplates divorce, it is important to spend a few minutes consulting with a *Divorce-Mortgage Specialist. Nearly all problems can be resolved in time. But, once terms of a divorce are set it is costly and most times impossible to change them.
5. NOT UNDERSTANDING THE MORTGAGE LENDING ENVIRONMENT
Since the “mortgage meltdown” of 2007-2009, the landscape of mortgage qualifying may be somewhat difficult. It is so important to have the borrower seek advice prior to any divorce settlement.
* Divorce-Mortgage Specialist. Currently, there is no certification for this specialty.
MORE ON THE OWELTY AND VARIOUS WAYS IT CAN BE USED AND REFINANCED
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