Divorce Mortgage Specialist: How and What They Do to Help
- What do they specialize in?
- How do they help in a divorce?
- Benefits of using a divorce mortgage specialist
- How much do divorce mortgage specialists cost?
A certified divorce lending professional has completed training about divorce-specific real estate and mortgage rules. They understand how to assist people who want to sell their homes during the divorce without incurring a hefty tax bill. And they can help people who want to transfer a property from two owners to just one.
If you're getting divorced and a home is involved, hiring a professional like this can help you work through legal and financial issues before you finalize your split. It can potentially save you a lot of headaches and expenses in the long run.
What do they specialize in?
Any traditional mortgage lender could assess your credit score, determine your home's value, and issue a new mortgage. A divorce mortgage specialist is different.
These professionals specialize in the following subjects:
- Conflicts: They can identify issues between your proposed settlement agreement and traditional mortgage guidelines.
- Hidden costs: They can dig into tax codes and uncover the fees associated with potential solutions you're considering, helping you to incur the least amount of expenses.
- Mortgages: If you choose to keep your home, these professionals can explore your options.
- Legal issues: They understand both what people typically do and what the law requires them to do.
A certified professional works with legal and financial issues at the same time. It’s a very delicate intersection.
How do they help in a divorce?
For many families, the home is the largest asset to split, and it's also the largest source of debt. Untangling these issues isn't easy, and it can be more challenging during a divorce where couples have to deal with many other issues, like child custody and spousal support.
Selling the home could release both parties from the obligation to make mortgage or home equity line of credit payments. But this choice could come with tax penalties.
Keeping the home means avoiding many tax problems, but if both people keep their names on the home, they're both responsible for payments. If one person skips a payment, the other takes the hit as well.
Retaining the home can also mean getting a new mortgage, which must be large enough to pay off the person moving out. These financial tools are complex, and plenty of options exist. A specialist can explain them and help you move any one of your options forward.
What are the benefits of using a divorce mortgage specialist?
Some people want to keep their divorce simple, and they resist hiring anyone to help them. But a certified divorce mortgage specialist could be a good person with whom to hold key conversations.
The benefits of using a divorce mortgage specialist include the following:
These people understand both mortgage and divorce law. If you have questions about how these things work, a professional could help.
Fewer future conflicts
It's easy to make mistakes during divorce negotiations. Give up too much, and you could face high bills in the future. A professional could help you avoid those mistakes so you have less to fight about in the future.
A professional can help you initiate a new mortgage if that's something you decide to do.
Divorce mortgage specialists work best when they're invited to the conversation early. They should come to negotiations long before your divorce is finalized. The earlier they can join, the more helpful they can be.
How much do divorce mortgage specialists cost?
If you choose to initiate a mortgage after working with a specialist, you may not notice the fee. Many professionals get paid by the brokerage firms they work for, so they don't present their clients with a bill.
If you don't get a mortgage, these professionals could charge you for their time. But costs can vary widely according to geographic area, the expertise of the specialist, and other factors.
Before you hire anyone to join your divorce discussions, ask about fees and who will pay them. Find one here.
What Should You Do With Your Marital Home in Divorce? Explore Your Options.
ReferencesWorking with a CDLP Helps Divorcing Consumers Make More Informed Decisions About their Mortgage and Home Equity Solutions During and After Divorce. Divorce Lending Association.
Who Gets the House in a Divorce? (February 2023). Forbes.