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Reminder: Do Not Disclose Pending Divorces

Yesterday, we almost had a purchase blow up in funding b/c an escrow officer assistant disclosed a pending divorce situation to the lender. The husband and wife were buying a second home for the wife with investment property financing.

The realtors and escrow officer all knew not to say anything about the divorce (we had apprised them), but apparently the escrow-assistant did not get the memo.

Lenders will not lend to borrowers with pending divorces unless lenders can know for sure what the liabilities (support payments) will be after the divorce is finalized. There is no way to prove this, however, in most cases when a divorce is pending. So, disclosing a pending divorce is often a deal-killer.

This is just a reminder to make sure everyone keeps pending divorces under wraps.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646