Agent helps negotiate a mortgage after a divorce

Mortgage adviser: Brenda Wyatt. Property type: Singlefamily home in El Cerrito. Loan amount: $628,000. Loan type: Conventional. Rate: 3.99 percent. Backstory: During a tough divorce negotiation, a client learned that she would need to refinance her property to buy out her soon to be ex-spouse.

Divorce is difficult enough as it is, but deciding what to do with the house becomes a major issue. As far as a lender is concerned, you are jointly liable for the mortgage unless you either sell the house, one party assumes the mortgage, or the property is refinanced with new terms and conditions. The mortgage you agreed to pay when you were married remains your responsibility — until you find a way to divorce it.

In this case, Wyatt analyzed the client’s financial profile and quickly identified that the borrower’s debt-to-income ratio exceeded allowable guidelines of 50 percent of gross income.

Wyatt met with the borrower and her attorney and outlined different alimony and child support scenarios. Lenders require three to six months proof of receipt of alimony/child support income and continuance of three years beyond the time you apply for the mortgage.

Armed with this data, the attorney was able to negotiate enough income needed for the borrower to refinance and remain in the home.

The client was excited that Wyatt refinanced the adjustable rate to a fixed rate and reduced the rate by almost 2 percent. Brenda Wyatt, All California

Mortgage (510) 761-7071, bwyatt@allcalifornia.com