There are many components of income considered in mortgage financing. When income from a divorce situation also comes into play, working with a divorce mortgage professional during the divorce process rather than post decree can help attorneys and divorcing clients identify and possibly avoid income qualifying issues for mortgage financing. When the situation also involves income from other sources such as property settlement notes, asset distribution income, etc. there are additional layers of stability and continuity required.
Temporary Orders and the Time Clock
When temporary orders are given by the court in regards to alimony/maintenance and/or child support, the time frame for meeting the receipt requirements begins upon the receipt of the first payment ordered through temporary orders. When final orders are given, the qualifying income dollar amount used for mortgage financing purposes will be the amount in the final settlement agreement. Typically one month’s receipt of final support order is required.
When mortgage financing will be a time sensitive issue upon the final settlement agreement, issuing temporary orders can be a benefit to the receiving party when support income is necessary for meeting the qualified income on mortgage financing. Temporary Orders can jump start the clock on the receipt of 3 or 6 months and be a benefit in speeding up the time frame of obtaining mortgage financing.
It is always important to work with an experienced mortgage professional who specializes in working with divorcing clients. A Certified Divorce Lending Professional (CDLP) can help answer questions and provide excellent advice. Please don’t hesitate to contact me directly to answer your questions regarding your specific situation.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice.
Copyright 2019 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.
Content provided by Women Belong member Barb Patterson