The Divorce & Mortgage Planning Model

The concept of divorce and mortgage planning was developed to provide individuals with a step by step plan to transition into a single income household.  Going through this difficult experience in their lives can cause a tremendous amount of additional stress and anxiety.

Your clients will want to connect with a mortgage professional who fully understands how to handle financing when an individual is going through the divorce process.

Below you will find the basics of Divorce & Mortgage Planning to use as a guide to make sure your clients are being advised in a professional manner:

Step 1: Address the mortgage situation early on in the process.

Taking the time to review credit, debt structure and income situations will allow your clients time to make improvements or adjustments that will help in their long term debt strategy.

Step 2: Develop a plan.

This is the step where time tables are set for improving credit, establishing an initial budget, addressing any immediate financing needs and getting your clients pre-approved to refinance their existing home or purchase a new home.

Your clients will also want to start thinking about short, mid and long term goals to make sure that financing decisions will match what their future goals are.

Step 3:  Selecting the appropriate mortgage product.

This is a critical step that must not be taken lightly.  There are too many mortgage professionals looking to take advantage of your clients who are in situations in which they have to obtain new mortgage financing.

The whole credit crunch evolved because of greedy mortgage professionals looking to make a paycheck on non-savvy clients.  Many of your clients will fall into this category if they were the spouse that didn't handle the bills.

The conservative approach is to make sure they get themselves into fixed rate financing.  Adjustable rate mortgages and interest only mortgages have gotten many homeowners into serious situations that they haven't been able to get out from under.

Step 4:  Professional follow up.

If the mortgage professional helping your client doesn't have a system for staying in touch with your clients be concerned.

Individuals coming out of a divorce deserve to receive ongoing personal financial education as well as one on one service at least once per year.  If they are not getting this refer them to someone who will provide them with this.

Overall, if you align yourself with a TRUE mortgage professional you and your clients will be in good hands.  If not, please be advise your clients to be very cautious before signing any paperwork.

Kevin Kowalke is available to consult with your clients who are looking for professional mortgage advice on a retainer basis.  Feel free to contact Kevin at 414-453-7620 to discuss details.

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