Short answer
Before signing, confirm who receives ownership, who remains liable for the mortgage, the buyout amount and how it will be funded, whether refinancing or assumption is required and possible, the deadline and whether it is realistic, and what the fallback is if qualification is not achieved.
The checklist
None of these require your mortgage professional to draft legal language. They simply confirm that the intended outcome is financeable.
- Who receives ownership?
- Who remains liable for the mortgage?
- What is the anticipated equity buyout?
- How will the buyout potentially be funded?
- Is refinancing required?
- Is assumption possible?
- What is the deadline?
- Is the deadline realistic?
- What happens if qualification is not possible?
- Is there a fallback plan?
- Will support income be needed for qualification?
- Has the future housing plan been analyzed?
Frequently asked
Can a mortgage professional review my draft agreement?
A CDLP® can review the mortgage implications of the intended outcome and share that analysis with your attorney. Legal language remains your attorney's role.
About the author
Abdel Khawatmi, CDLP®
Certified Divorce Lending Professional and founder of Got Mortgages, a division of Paramount Residential Mortgage Group, Inc. Abdel works with divorcing homeowners, attorneys, mediators, financial professionals and real estate professionals across New Jersey. NMLS #1712023. He is not an attorney, tax advisor or financial advisor, and this article is educational only.