Annette Masterson Gets | House Documents Handled

Part of free mortgage counseling, written Mortgage Pre-Approval or Pre-Qualification are each a written document. Each confirms that the potential borrower qualifies for the stated loan program.

If a divorcing homeowner attends free mortgage counseling and does not receive written Mortgage Pre-Approval or Pre-Qualification, that divorcing homeowner does not qualify to refinance the marital mortgage.

Liens are often debts that cloud house title.  Liens for unpaid medical bills, property taxes, credit card debt, etc. can prevent you from refinancing the mortgage or selling the house unless the liens (debts) are paid.

When a lien is recorded against house title, the lien reduces house equity by the amount of the debt. That is because the lien must be paid to complete, for example, mortgage refinance or to sell the house to a third party buyer.

Keep in mind liens are common during the financial strain of divorce.

Insurability: Just because the marital home had house insurance during the marriage does not guarantee insurance coverage will continue after divorce.Too many insurance claims filed on your house may render it uninsurable.

Insurance Affordability: As the house spouse, if your credit score and separate insurance score are lower than your former spouse's, along with claims history, you may end up paying 3x - 5x more than the marital house insurance rate.

House condition can reduce house value. It also affects children's ability to learn, as well as their health and safety.

What is your house hiding?

Is there a leak in your crawl space? Is your roof improperly ventilated (meaning the roof will have to be replaced years sooner than you planned)?

Have you been in "inaccessible" areas of your house, including the crawl space or basement?

Are there signs of wood destroying organisms (e.g., termites) or organic activity that a lab has not yet determined to be mold?

House repairs can be expensive. Make sure you know the condition of your house and cost of repairs before agreeing to keep it during mediation of a property settlement agreement.

If the mortgage REFI does not go through, you remain responsible for the mortgage as a co-borrower.

Signing a quitclaim deed has no impact on, does not remove or change your mortgage obligations. Keep in mind, the deed is not the debt. These are separate legal instruments. Changing one (Deed e.g., signing a quitclaim deed) does not automatically change the other (Debt e.g., co-borrowers obligated on a joint mortgage).

Make sure you understand joint and several liability before finalizing property division.