Loan Application Says: "Is there Pending Litigation ?" Divorce IS !

By
Real Estate Agent with Keller Williams 414-525-0563 57026-90 Broker

 Loan applications are nosey by nature....the Lender owns more of the house than the Buyers most of the time....and the decline of the market has made those Lending folks....a tad Foggy mirrormore cautious about how much they lend and to whom.  The ability to fog a mirror and be approved for a loan days are gone. 

    There were some "in house" mortgages who bragged that no appraisal was required before the decline of the market...uh oh....Not always an appraisal fan...but none..hmmmmm.

     As Realtors with a very concentrated niche in divorce, we are keenly aware of the requirements when one spouse often unwisely, decides to "buy out" the other spouse thru refinancing.  We have yet in the hundreds of divorce related transactions we have done,  to see it as a real need...it usually full of unused bedrooms and bathrooms for the re-financing spouse...but Divorce houseohhhh that "gotcha" gratification !  I have what you do not have or what you want...I won ! I won ! It is an "ego" victory and usually results in no "second chance to start over"  for the party having taken on the debt of a house they don't need. They have, sometimes believing that the right answer to "Are you involved in any pending litigation ?" is YES....it is not....IF you are divorcING and not DivorcED ...You ARE involved in pending litigation. As a result...since the gavel has not sounded for the final time....you really do not absolutely know your debts....Are you paying/receiving maintenance ? LiitgationHow are the balances on credit cards being paid ?  What outstanding debt is in joint names...what is in one name only ?  Is there a time limit involved in when these debts must be paid in full ? If someone is counting on the funds of a retirement account for paying bills OR as a down payment on a new house...are the tax consequences considered ?Gavel divorce

    The right answer to "Are you involved in Litigation ?" BEFORE the divorce is final is ABSOLUTELY !  Does that mean you are a candidate to buyout your spouse ?  Maybe Not.  We believe that the best decisions are made from a position of strength....and mix of emotional and financial turmoil is not the best time for that decision....for the issues involved both emotionally and financially.

        If you or anyone you know is involved in a divorce in 8 Wisconsin counties...Kenosha, Racine, Walworth, Milwaukee, Waukesha, Washington, Ozaukee and Jefferson....call the Hansons...the only Real Estate Professionals certified in Divorce in Wisconsin.  If you are a real estate agent wanting to learn how best to make Divorce your niche in Real Estate...Call the Hansons and ask about their DREAM course ....there is more to being an agent in this situation than you might imagine. 

      This is a public service post to you courtesy of Sally K. & David L. Hanson, Broker Associates with Keller Williams Realty.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Ambassador
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Sally and David

You clearly are the go-to Realtors is anyone is looking to sell, whether involved in a divorce or not. And if sellers are in the latter situation, they can expect to get the best, honest advice for their situation and how to proceed.

Jeff

Jul 08, 2017 07:46 AM #1
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- I'll bet that there are many who have no idea about this. When a friend was going through a divorce,  I said don't make a move without talking to an attorney and good agent!

Jul 08, 2017 02:15 PM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
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Sally and David that is a great point.  Also the loan will not be approved until the final divorce decree is signed and the Lender knows what all the debt will be.

Jul 08, 2017 02:43 PM #3
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Well said and such a good lesson. I list alot of homes due to divorce and also sell them each a new one in many case and have to go over this often Sally K. & David L. Hanson 

Jul 08, 2017 04:31 PM #4
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                           Thank you Sally K. & David L. Hanson 

Jul 08, 2017 05:56 PM #5
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Divorce is tricky business and it has to be done right or the bills will haunt the other spouse. Have a good weekend, Sally and David.

Jul 08, 2017 06:27 PM #6
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James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Sally.  The got-ya moment can come back and bite you.  Revenge or the got-ya moment is best served cold.

Jul 09, 2017 02:53 AM #7
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Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson,

I was so glad to see this post featured in Kathy Streib "Ah-Ha" moments for the week! Good point as divorce can be tricky business and you have the answers!

Jul 09, 2017 05:10 AM #8
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Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Good morning, Sally and David... an important and yet subtle distinction that many don't think of.

Jul 09, 2017 05:11 AM #9
Rainmaker
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Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Indeed this is true and the failure of a loan applicant to answer truthfully is considered loan fraud.

Jul 09, 2017 05:34 AM #10
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Sally and David - Anyone involve in a divorce and having a home in SW Wisconsin should contact you.

Jul 09, 2017 06:31 AM #11
Rainmaker
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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I am glad I did not miss your post thanks to Kathy's mention! Great job!

Jul 09, 2017 07:32 AM #12
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Your clients are so very fortunate to have you on their side (or sides!), Hansons both! I will say that most would not realize this and could find themselves in a bit of trouble if they didn't get sound advice from their agent about disclosing this pending litigation. 

Hope you're having a fabulous Sunday!

Jul 09, 2017 08:55 AM #13
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Anna Banana Kruchten,CRS,CRB,GRI
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Sally and David excellent post!  You two of the best agents in WI to hire for people going through the process of divorce. So much to know and understand and having a voice of reason to guide you (not your emotions) is critical during this time.

Jul 09, 2017 10:29 AM #14
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Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Sally and David -- the devil is in the details...and if someone doesn't understand the consequences there could be Hell to pay.   

Jul 09, 2017 12:49 PM #15
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sally and David, all I can say is we all have our crosses to bear, and yours is the Divorce Niche mine is the Land Niche and they both are not for the faint at heart, Endre

Jul 09, 2017 04:43 PM #16
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Sally and David.  I never really thought about this and I'm sure many folks in the process of divorce may get this wrong.

Jul 10, 2017 04:00 AM #17
Rainmaker
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Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sally & David, divorce is a pending litigation, and many do not consider this! 

Jul 10, 2017 05:41 AM #18
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Sally and David

Your post offers great insight on buying a home with a pending divorce.

Good luck and success.

Lou Ludwig

Jul 10, 2017 07:18 PM #19
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