First of all talk to your attorney, this is my best advice.  Despite the fact that divorce is an emotional roller coaster, the process demands a reasoned and rational approach to the disposition of shared real property. This is especially true when there are outstanding loans that obligate each individual.

Remember the loan clause regarding each spouse being equally and severally liable for the entire debt?  If both spouses had originally signed for the mortgage and one one spouse is going to keep the property, it is of paramount importance that the other meets his or her obligation before signing over ownership interest.  It may be necessary to refinance the mortgage so that the other spouse can be paid off. Besides determining who should buy the other person out you must negotiate the division of property and assets. But even before this takes place, you need to know your share of the equity. Therefore you must evaluate the worth of the house, subtract the outstanding mortgage balance and then calculate your share of what remains. read more »

Securing a Mortgage Loan? Plan Your Strategy.

Mortgage rates this week are quoted as low as 4.25% fixed on a 30-year primary residence mortgage. These low rates may even drop further before they begin to rise again; the real surprise may be the difficulty of even well qualified buyers in securing these low rates.

I want to review the important steps to be followed in applying for and obtaining the best rates offered. The loan process begins with an individual’s credit report and the FICO credit score.

The FICO score is the 3 digit number that is used in the majority of mortgage lending decisions. I recommend buyers order their score on the web for a nominal charge at least 6 months in advance so that there is time to challenge any errors prior to making an application for a loan. Never confuse being “pre-qualified” with being “pre-approved” for a mortgage loan. The first term is almost meaningless while the second is a complete process and actually involves applying for a loan. read more »