This is another reminder from previous Comments because it has come up many times. If a borrower or buyer is involved in a divorce that is not yet recorded or finalized, do not bring it to light. If lenders find about a pending divorce, it raises legitimate issues in regard to future liabilities.
Hence, lenders will not fund a loan without a final divorce decree or a recorded separation agreement.
If a divorcing borrower needs to fund a loan before a divorce is finalized, he has three options: (1) disclose and finalize the divorce before close of escrow; (2) not disclose the divorce and allow or coax his future ex-spouse to be on title (she does not have to be on the loan); or (3) not disclose the divorce and convince his future ex-spouse to quit-claim off title prior to close.
Borrowers cannot simply “pretend” to not be married for a variety of reasons. The biggest reason is that his tax returns will indicate that he is married.
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