Divorce Resources of Colorado Springs

  Divorce Buyout Refinance: Key Insights for a Smooth Process When a marital home is awarded to one spouse during a divorce, a buyout refinance is often necessary. This is especially true when the spouse keeping the home cannot assume the existing loan due to the need to pay out the other spouse’s equity. In these cases, understanding the nuances of Fannie Mae and Freddie Mac guidelines is crucial. 1. Rate-and-Term Pricing vs. Cash-Out Refinancing One of the most significant benefits of a divorce buyout refinance is that it can often be treated as a rate-and-term refinance rather than a cash-out refinance. This distinction is vital because: Rate-and-term refinances typically have lower interest rates and fewer fees compared to cash-out refinances. This can save the borrower thousands of dollars over the life of the loan. To achieve this, the final divorce decree must explicitly document the buyout as part of the marital property division. Without clear language, ...

When couples bought homes during the low-interest-rate years, many locked in mortgages at 3% or less. Fast forward to divorce — and suddenly, the spouse who wants to keep the home faces an impossible choice: refinance at today’s 7% rates or sell the house altogether. But here’s what most people — and even many attorneys and lenders — don’t realize: you may not have to refinance at all. In a divorce, the spouse awarded the home can often assume the existing mortgage and keep the original loan terms, thanks to federal law and Fannie Mae/Freddie Mac servicing rules. It’s called a loan assumption, and it’s one of the most misunderstood — yet powerful — tools in divorce real estate.   What Is a Loan Assumption? A loan assumption means one spouse takes over responsibility for an existing mortgage, without changing the interest rate, balance, or terms. In other words, you “step into” the loan rather than starting over. The payments, escrow, and account history stay the same — but th...

  More Than Just a Number: What Your Credit Report Reveals in Divorce When most people think of a credit report, they picture a three-digit score that lenders use to decide whether or not someone qualifies for a loan. But in divorce, a credit report is so much more than just a number. It tells a story—sometimes one that the other spouse never intended to be revealed. Beyond the Score: The Hidden Value of a Credit Report Attorneys, mediators, and financial experts often overlook how valuable a credit report can be in uncovering hidden details during divorce. That’s where a Certified Divorce Lending Professional (CDLP®) adds unique perspective. A CDLP® is trained to go beyond traditional underwriting. We analyze the credit report not only for mortgage approval but also for how its details affect divorce strategy, settlement negotiations, and post-divorce financial stability. Address History: A Trail of Truth One of the most overlooked sections of the credit report is the ad...

  When a marriage ends, the home often becomes one of the most important pieces of the puzzle. It is more than just a building. It is where memories were made, and it is also a major financial asset. Deciding what to do with it can be one of the toughest parts of a divorce. If you are a homeowner in Colorado Springs, understanding your options and the process can make this part of the journey less stressful and more manageable. Step 1: Know the Common Options for the Home Most divorcing couples end up with one of these three outcomes: Selling the home and dividing the proceeds One spouse keeping the home and refinancing into their own name Renting out the home temporarily The right choice depends on your finances, the housing market, and your long-term plans. It can help to write out the pros and cons of each option before making a final decision. Step 2: Understand Why an Accurate Valuation is Important The value of your home plays a big role in how assets are divided. Having a ne...

When divorce involves real estate, one of the biggest financial challenges is removing one spouse’s name from the mortgage . This step is essential to protect credit and future borrowing power.  Many people think signing a quitclaim deed is enough — but it’s not. Ownership (title) and mortgage liability are two separate things . If your name is still on the mortgage, you’re still legally responsible for the debt, even if you no longer own the home. In divorce lending, there are three main ways this can be handled: 1. VA and FHA Release of Liability  For government-backed loans like VA and FHA , a release of liability may be possible without refinancing the entire loan. VA Release of Liability If the remaining borrower can qualify on their own, the VA may approve a substitution of entitlement or release of liability . This removes the departing spouse from mortgage responsibility. For VA loans, a veteran’s entitlement may still be tied up unless the person assuming ...

If you’re going through a divorce – or think you might be soon – it’s helpful to understand how divorce  . and money works.  A divorce is an emotional life event. Doing what’s best for minor children should always be the first priority. And once parenting has been decided, the financial issues are ideally addressed as a business deal. A financial settlement should be fair, not a retribution to your ex-spouse. When it comes to assets and debts, which is called property in the family law arena, Colorado is an equitable distribution state. Equitable doesn’t mean equal, it means fair, so a division of property is intended to be divided in a fair manner. The spouse who has been the primary earner in the marriage or managed the family finances may feel like it’s fair that they get the majority of the property. But what’s generally considered fair by objective parties is that the spouse who hasn’t earned as much during the marriage is more likely to need more of the property than the...