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Breaking Up (Is Subject to Guidelines and Restrictions)
Breaking Up (Is Subject to Guidelines and Restrictions)
 
When we look at our refinance business, not a small percentage of it is driven by the scenarios where one spouse buys out the equity of the other, as stipulated in a divorce decree.  Sometimes when we are presented with a divorce buyout refinance we have to educate all the parties to the transaction on how to navigate the lending guidelines that govern these situations and, as you might expect, divorce buyouts are often done in a stressful environment.  So for those who may be looking to get an overview and understanding of the process, I hope that the key points below will help to reduce the friction that may already exist during this most difficult of periods in a relationship's life.
 
"A man in love is not complete until he is married.  Then he is finished." 
There are only three marital statuses on the loan application (married, unmarried and separated), and yes, you have to pick one.  If any borrower is still married when he/she attempts to refinance then the application and closing must, in some way, involve the other spouse and that person's ownership rights.  Refinancing at this time would not technically be considered a ... more

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