Short answer
The most common mortgage issues in settlements are unrealistic refinance deadlines, buyout amounts that exceed financeable loan-to-value, reliance on support income that will not yet qualify, and the assumption that a deed transfer releases mortgage liability.
Four recurring collisions
These come up repeatedly and are all preventable with an early review.
- Refinance deadlines that do not allow for underwriting, appraisal and closing
- Buyout amounts that require a loan exceeding program loan-to-value limits
- Support income relied upon before it is documented or established
- Deed transfers executed without a corresponding release of mortgage liability
How a CDLP® fits alongside counsel
The role is analysis and feasibility, not legal drafting. A written scenario review lets counsel negotiate around what is actually achievable, and gives the client a realistic housing plan on the other side.
Frequently asked
Is there a cost to a feasibility review for my client?
An initial educational review and conversation is offered at no cost. It is not a loan application.
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.