It seems to be divorce season as well as wedding season, and with that, we thought we’d discuss a few reminders.
Once a divorce is disclosed to a lender, divorcing borrowers cannot obtain financing until the divorce decree or settlement agreement is signed by a judge and recorded with the county.
If borrowers can’t get a signed settlement in a timely manner, they should not disclose the pending divorce. In this situation, borrowers need to make sure the soon-to-be ex-spouse is willing to quitclaim, or be a signer for the loan.
Borrowers can speed up the time it takes to get a county judge to review a settlement agreement (often over 3 months) by hiring a private judge to sign the agreement for as little as $500. This can take only a week.
Borrowers relying on alimony, child or spousal support to qualify for financing must have received it for at least 6 months (to prove history), and they must prove it will continue for 3 years.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646