What Does a Divorce Mortgage Specialist Do?
- What is a divorce mortgage specialist?
- What is a certified divorce lending professional (CDLP)?
- Why you might work with a CDLP
Divorce can be a complicated and emotionally draining process, with financial concerns often adding to the stress. A key aspect you may not have considered is your mortgage. Enter the divorce mortgage specialist: a professional who can guide you through the intricacies of dealing with your mortgage during a divorce.
What is a divorce mortgage specialist?
A divorce mortgage specialist is a professional well-versed in mortgage issues that can arise during divorce. They are equipped with the knowledge and skills to navigate the unique financial challenges that come with a break-up, particularly those related to mortgages.
Reviewing your MSA
One of the key roles of a divorce mortgage specialist is to review the marital settlement agreement (MSA), which outlines how the couple's assets and debts will be divided. This includes the marital home and any mortgages.
Identifying your options
With an understanding of your financial situation and the specifics of your MSA, the specialist can identify refinancing options that may benefit you. This could mean lowering monthly payments, reducing the term of the loan, or securing a better interest rate.
Advising you on your mortgage
Divorce mortgage specialists can advise clients on how to handle mortgage situations post-divorce. They may help you explore your options, such as selling the marital home, continuing to co-own the property, or having one party buy out the other’s share. Each choice has implications regarding taxes, credit scores, and future borrowing capacity. A divorce mortgage specialist can help you understand these nuances.
The specialist can guide clients through the process of removing one spouse's name from the mortgage, if necessary, and updating the related legal documents. This is a critical step to protect your credit and maintain sole control over your property after the divorce.
What is a Certified Divorce Lending Professional (CDLP)?
A Certified Divorce Lending Professional (CDLP) is a professional who specializes in the intersection of divorce and mortgage financing. They have undergone rigorous training and certification to understand the unique financial landscape of divorce, particularly as it relates to mortgage lending and real estate.
There are several situations where you might benefit from the expertise of a CDLP. For instance, if you or your spouse wish to keep the marital home post-divorce, a CDLP can guide you through the process of refinancing the mortgage under one person's name. They understand the lending guidelines related to alimony, child support, and maintenance income, which can be critical in securing approval for the loan.
See Hello Divorce's Home Buyout Calculator for information about buying out a spouse's share of a home or other property.
Navigating the home-selling process
If selling the marital home is the chosen path, a CDLP can provide guidance on how to navigate this process while protecting your credit and maximizing your financial stability. They can also advise on potential tax implications related to the sale of your home.
Structuring new mortgage terms
In cases where you decide to co-own the property post-divorce, a CDLP can help structure the terms of your current mortgage to ensure they align with your Marital Settlement Agreement and protect both parties' interests.
Working with a CDLP can give you invaluable insights and guidance during a trying time. Their expertise can help you make informed decisions about your mortgage and real estate matters, ensuring you secure a stable financial future post-divorce.
At Hello Divorce, we are here to equip you with the services you need for your divorce process – and none you don’t. If you’re considering adding a financial planner or a CDLP to your professional divorce team, or if you’d like to talk with someone who understands what you’re going through and can troubleshoot with you, schedule a free 15-minute informational call.