In this time of high mortgage rates it has often become too expensive for divorcing couples to do what they would like to do with their jointly owned and financed home - complete a buyout of one by the other where the “buyer“ refinances the mortgage in his or her sole name and the “seller” receives cash or other mutually agreed assets. The resulting mortgage payment at the higher rate can be simply unaffordable and even if financially possible, seems like a waste of financial resources at a time when those resources are being stretched.
In the past month a new option has come to my attention for a certain group of clients where one spouse is a veteran, used his or her V. A. certificate as the down payment when the couple purchased the home, and the veteran is the “buyer.”
It appears that under V.A. Circular 26-23-10 dated 5/22/23 the non-veteran spouse may be released under an assumption leaving the low rate mortgage terms in place for the veteran. Of course additional conditions may apply, but if it might be available in your situation, it's worth looking into.
Some traditional lenders also offer assumptions so it’s always worth asking if an assumption is available, but at least for this group there appears to be a new option.
Blog
V.A. Circular 26-23-10 Spousal Release from Mortgage
Friday, December 8, 2023Categories: Divorce Mediation
In this time of high mortgage rates it has often become too expensive for divorcing couples to do what they would like to do with their jointly owned and financed home - complete a buyout of one by the other where the “buyer“ refinances the mortgage in his or her sole name and the “seller” receives cash or other mutually agreed assets. The resulting mortgage payment at the higher rate can be simply unaffordable and even if financially possible, seems like a waste of financial resources at a time when those resources are being stretched.
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Creating Successful Parenting Plans
Wednesday, May 31, 2017Categories: Divorce Mediation
Mediation provides the opportunity for a couple faced with parenting issues to plan new parenting roles and responsibilities that will meet the needs of their children after their separation.
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Dealing with Financial Issues in Mediation
Thursday, March 23, 2017Categories: Divorce Mediation
After years of marriage it is not uncommon for separating couples to have a broad and diverse financial picture and for one spouse to have a better understanding of that financial picture. In mediation, the entire financial picture is placed on the table. As in the rest of the mediation, both spouses are present for the financial information sharing process where source financial documents are reviewed together with me. Often the financial information sharing process also becomes an educational process where the assets and liabilities are described and explained to each other. I help guide the information and explanation process – this can be a challenging time for both the spouse who is familiar with the finances as well as the one who isn’t. Spouses are then in a position to create, review, and consider options that make the most sense for their future and that put their available resources to best use.
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How Mediation Creates Fair Agreements
Sunday, March 19, 2017Categories: Divorce Mediation
How can mediation solve a problem where one spouse sees it one way and the other sees in entirely differently? If there’s no agreement, you might think that mediation won’t work. On the contrary, mediation works especially well when agreement seems impossible.
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Protecting Your Rights in Mediation
Tuesday, March 14, 2017Categories: Divorce Mediation
In mediation, issues that have specific legal guidelines, like child support, will be calculated just as they would be in court (but it's important to know that statutory child support calculations are guidelines - and even though a judge could impose the guideline amount on a spouse, in mediation the couple retains control over the amount of child support). The other issues are completely open for the couple to decide. Unlike a mediator who hears from both spouses, an attorney only hears one side. Attorneys are used to working in a court environment and tend to be limited by what a court might decide. But the needs of your family don't fit into predetermined court-oriented shapes. Customized arrangements can be created in mediation that judges simply do not have the flexibility to come up with - and they'd be the first to tell you.
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