Banker provides solution for a common divorce problem

Mortgage banker: Harry Sessa

Loan type: Conventional refinance loan

Loan amount: $92,000

Home value: $285,000

Backstory: Harry Sessa received a recent referral for a refinance mortgage. After a recent divorce, the borrower’s ex-husband remained on the mortgage for the home she retained as part of the divorce settlement.

She was told by a loan officer from a national internet mortgage company that she needed to refinance the loan held by her former husband and herself for it to be in her name only.

Sessa asked a few simple questions and determined the home was valued at approximately $285,000 and the loan balance was $92,000 with a rate of 3.875 percent.

Also, her credit score was estimated to be in the mid-700’s with little outstanding debt and an income of $90,000 per year. She was, in fact, well qualified to refinance the loan in her own name.

Sessa advised his potential borrower that there may be a more equitable solution to solve her problem. This was for her to reach out to the modification department of the mortgage servicer of her current loan. She could apply for a modification of the current loan in her own name and, if approved, for a small fee and minimal documentation, her ex-husband could be removed with no change in the loan’s terms or rate.

A very important question when initially shopping for a lender is, if they service the mortgages for the majority of their loan customers, post-closing. Many lenders, while retaining the right to sell the servicing of your mortgage — collecting monthly escrows and paying your insurance on your behalf etc. — keep servicing their loans for the life of your loan.

When buying or refinancing, choosing a lender with a long history of servicing mortgages, modifications and other loan requests can often be accomplished more smoothly.

With minimal amount of documentation and a fraction of the cost of a full a refinance, Sessa’s potential borrower was approved for modification and able to keep the same mortgage she had with the same rate, balance and outstanding term.

Sessa was pleased to provide her with a low cost solution to a common problem. Sessa’s client was very happy with his advice and has since referred two new buyers for mortgages.

Harry Sessa, Mortgage Banker, Citizens Bank, NMLS 632510, 203-494-1478 (cell)