VIBE recently hosted Brett Leschinsky, a Senior Loan Officer with CrossCountry Mortgage, to learn how divorce affects real estate transactions. We wanted to find out how different lenders treat divorce situations, discover if child support can be counted as qualifying income and get tips for divorcing sellers and agents. Read on for all that information and more.
Question: Do all lenders treat a divorce situation the same?
Answer: No! This is a great question. Many lenders have overlays on Fannie/Freddie guidelines when it comes to divorce, especially banks. Mortgage companies don’t tend to have these overlays. An example of an overlay is Fannie may allow a divorcing client to purchase a house before the divorce is final, but banks overlay that…