Debbie Schneider’s Post

When a relationship comes to an end, there are tough decisions to make and various matters that need to be resolved. One common concern we hear is what happens to loans and mortgages, especially for couples who jointly own property. This blog looks into what happens to your mortgage when you begin the process of separation. Check out the full article below: https://lnkd.in/gx9jHYYS

In 2022, a staggering... wait for it... 2.78 million people filed for divorce in Canada, highlighting the significant impact separations have on individuals and their finances. With the divorce rate at 38%, spousal support often becomes a hot topic for our mortgage clients. Handling alimony payments alongside mortgage qualification can feel like walking a financial tightrope. While vital, these payments can heavily influence your ability to secure a mortgage. They're treated as recurring debts, similar to car loans or student loan payments, affecting your debt-to-income ratio and borrowing capacity. For instance, if you owe $1200/month in alimony, it could reduce your mortgage qualification by approximately $150K – a substantial impact. On the flip side, receiving spousal support can boost your borrowing power. The clash between homeownership dreams and financial realities underscores the importance of careful budgeting and adjusting your expectations. Qualifying for a mortgage means finding balance amid financial obligations, requiring informed decision-making and resource management. And that’s where I come in – ready to guide you through!

Managing Your Mortgage During Major Life Changes: Life is full of significant transitions, and major life events such as divorce, inheritance, or starting a business can deeply affect your financial landscape, including your mortgage. Understanding how these changes impact your mortgage options and financial planning can help you make informed decisions and manage your home loan effectively. Divorce: Reassessing and Refinancing Divorce […] The post Managing Your Mortgage During Major Life Changes appeared first on Ishakis Finance Report Mortgage Broker Brooklyn. http://dlvr.it/TDKpJr

GIFTED MONIES - Sadly, divorce may cause emotional distress and significant financial losses Protect gifted monies with AffordAssist   Dear All, Sadly, a divorce may cause emotional distress and significant financial losses; in the case where parents gift cash towards a deposit to help secure a home loan and buy a property that cash-gift may end up in financial losses. …what was gifted with love and meant to support a new family home has been painfully lost.   The AffordAssist Deferred Deposit Agreement (DDA) may serve to provide the means to potentially protect deposits – the agreement provides several clauses to manage risk outcomes.   Why use an agreement between family? Life happens. The principal here is that help is acknowledged and appreciated for the means it is providing; a home. This process also gives the buyers dignity and strength of character. They do get your family help, but not a hand-out. The process also provides the parents with peace of mind.   A nominated amount and term are entered into between the buyers and parents – includes an interest free payment plan. Summary: 1.      Appreciating financial responsibility 2.      The amount may vary and is included as part of the loan servicing application  3.      The term may vary  4.      Interest free payment plan 5.      Caveat after settlement until DDA is completed 6.      Several clauses to manage risk outcomes Click to know more: https://lnkd.in/facpycK   AffordAssist is not a broker. Provide and manage the governance process. Have a panel of approved brokers. Are you a broker? Join our mission to help increase home ownership. We welcome your team work; together we can help more into home ownership.   Kind regards AA

Navigating the complexities of mortgages after a divorce or separation can be daunting. Our latest blog post breaks down essential steps and strategies to help you move forward confidently: Understand your mortgage options Assess your financial situation Steps to take if you want to keep the family home Considerations for selling the property Building a new financial future Read more to empower your journey toward financial independence and security. Check out our full blog post below: https://lnkd.in/efwEyPfq

https://lnkd.in/eypXcfHq What happens to a mortgage loan during a divorce in California? Scott Levin and Sam Mehta explore the implications of divorce on a mortgage loan and the options and considerations to answer so you navigate this process smoothly. Do you refinance the mortgage? Should you keep the mortgage intact if there will be a buyout by one spouse? What are the negative impacts to the non-owning spouse if he or she remains on the mortgage loan? Consider the intersection of home loans and divorce and learn about the issues most commonly asked about. Learn how couples can both remain on the loan after divorce and the potential risks involved. Learn about the 12-month rule and how a non-owner can stay on the loan but not have it count against him or her when applying for future loans. This discussion really provides great insight and mortgage wisdom.

** How divorcees are keeping their 3% mortgage ** This year’s home buyers may be celebrating the prospect of a mortgage rate of 6% instead of 8%, but still kicking themselves about missing out on historic low 3% rates as recently as 2020 and 2021. At the same time, years of low rates means that many of today’s sellers have a mortgage rate well below the current average and theoretically ripe for assumption. While taking over an existing loan sounds like a dream to many buyers, there are drawbacks. Only about one in five mortgages are eligible and even if the loan qualifies you might not. Plus, you’ll need to pay the difference between the remaining loan value and purchase price. Here is what you need to know. What is an assumable mortgage? An assumable mortgage is a loan that can be transferred to buyers with the same interest rate, term and payments. If a seller has a loan that can be assumed (more on what loans are eligible below) and the buyer qualifies for the loan, the buyer can take over the mortgage. They will then make payments on the remaining balance at the same rate and term as the original borrower. Assumable loan types Most government-insured mortgages—which include FHA loans, Veterans Affairs-backed or VA loans and U.S. Department of Agriculture or USDA loans—are assumable. Conventional loans, which are made by private lenders and account for about 70% of new mortgages, are generally not assumable (except in some instances such as death or divorce). Conventional loans usually have a “due on sale” clause that allows the lender to be paid in full when the property is transferred. How to do a mortgage assumption Assumable loans are most common in markets where many buyers finance homes with a VA or FHA loan. You see them mentioned more often in areas near a military base or where a lot of veterans retire. Even when a loan is assumable, buyers and sellers don’t always know it’s an option. Sellers can check their loan documents to see if their mortgage is assumable. But sellers don’t always have an incentive to offer an assumable loan when there are plenty of buyers for their property. How to qualify Buyers must meet the eligibility requirements for the loan program, including minimum down payment, living in the home, income and credit score requirements for an assumable loan. Both parties have to participate in the loan process, and sometimes the person being removed from the loan will not participate or sign documents. If the seller agrees, buyers must apply and qualify for the assumable loan as they would any other loan, providing documentation such as bank statements, pay stubs and W2 forms to the sellers’ lender. If you’re still hoping for an assumable loan, the best thing you can do is to be prepared with good credit and all your financial paperwork in order for a smoother process. And be ready with cash. Jacqueline Harounian, Esq. 🪬 Derrick Rubin #mortgagebrokers #divorceagreements #loanassumption #buyout

Divorce brings many changes, and one of the significant decisions you might face is figuring out how to manage or assume a loan that was in both names. If you’re dealing with this situation, here are some key things to know and steps to consider: 🤝💼 1. Understanding Loan Assumption Assuming a loan means taking over the existing mortgage or loan from your ex-spouse. This process involves becoming legally responsible for the remaining balance and terms of the loan. 📜🏡 2. Review Your Current Loan Terms Check your mortgage or loan agreement to see if it has a “due-on-sale” clause or if it’s assumable. This clause could impact your ability to assume the loan. 🔍📝 3. Check Your Credit Score and Financial Health Your credit score and financial situation will be evaluated by the lender to determine if you qualify to assume the loan. Make sure your finances are in order and up to date. 💳📈 4. Communicate with Your Lender Contact your lender to discuss the possibility of assuming the loan. They will guide you through the process and inform you about any fees or documentation required. 🏦📞 5. Get Legal and Financial Advice Consult with a lawyer or financial advisor to understand the implications of loan assumption and to ensure you’re making the best decision for your future. ⚖️💡 6. Update the Deed and Title If you assume the loan, you may need to update the deed and title to reflect the change in ownership. This step is crucial for the loan assumption process. 🏠✏️ 7. Consider Refinancing Options Sometimes, refinancing might be a better option than assuming the loan. Explore all your options to find what works best for your situation. 🔄💵 Going through this process can be challenging, but with the right information and support, you can navigate it successfully. If you have questions or need guidance, feel free to reach out—I’m here to help! 🤗💼 #yourhomelegal #realestate #legaltips #estate #realestateinvesting #investing #realestateattorney #divorce #loan #mortgage #financetips #financialtips

Divorces are anything but simple and having a joint mortgage make it even more complicated. But almost any situation can be remedied with one of the options we outline: https://lnkd.in/gdbmEd6U

🔍 Delving into the nuances of divorce income for mortgage approval! Join us as we discuss the intricacies of incorporating income sources like child support and alimony into your mortgage application. Did you know you typically need six months of receipt and 36 months of continuance for these incomes to be considered? In this video, we break down the essential requirements and considerations for divorce-related income, shedding light on what lenders look for during the mortgage approval process. Whether you're receiving support payments or making them, understanding these guidelines is crucial for a smooth home financing journey. Ready to explore how divorce income factors into your mortgage application? Watch now and empower yourself with the knowledge you need! #TheMoreYouKnow #DrennenHomeLoans John Drennen, CDLP NMLS # 337203 702-612-0802 john.drennen@fairwaymc.com