Many people going though a divorce want to remain in the home for sentimental reasons. Other times it is out of spite that they want to keep the house the soon to be "ex" worked so hard to get or was proud to have. But staying in a house they cannot afford because they are emotionally attached to it is the Number 1 mistake most make when a divorce is involved. Often the client does not want to hear it but you know that they will not be able to keep the house even if they do get it in the property settlement.
By forming a relationship with a mortgage planner to work with your clients you will find an ally in communicating difficult financial matters to your client. Then when your client speak with a mortgage planner months in advance they can provide them with a dose of reality of what a mortgage payment will be "after" the divorce is final. This part of the conversation is often a rude awakening for many because they have not been a part of the process in the past and many times due to their circumstances they cannot provide full documentation for their mortgage.
Coming from an expert in the financial field your client may actually listen to reason. I have found that by sitting with the client and reviewing their proposed finances (as they will be post settlement) and the programs that we have available they are able to draw their own conclusions that they cannot afford to stay in the house.
This in time will save you time and your client money allowing you to focus on the legal issues at hand. In the end your client will have less financial stress which makes them a happier client resulting in more referred business for you making it a win-win.
About the Author: Dave Muti, JD, RMA is the author of Mortgages: What You Need to Know and a Senior Mortgage Planner with Millenium Home Mortgage, LLC located in Parsippany, New Jersey. Dave can be reached at info@mortgageswhatyouneedtoknow.com.
Comments (0)Subscribe to CommentsComment