Just Approved:

Adviser helps couple navigate divorce.

Mortgage adviser: Brenda Wyatt. Property type: Single-family home in Oakland. Refinance amount: $530,000.

Loan rate: 4.375 percent. Background: Wyatt was approached by a couple who were getting divorced.

Divorces are difficult and full of procedures since people are deciding what to do with a house. The property becomes a big liability of a separation.

As far as a lender is concerned, you are jointly liable for the mortgage unless you sell the house, one person assumes the mortgage or the property is refinanced with new terms and conditions.

Refinancing is the most common solution to handling a divorce and mortgage. One spouse wants to keep the home and hold sole title to the property.

When there is equity that needs to be shared, some mortgage programs will not deem the refinance as a cashout refinance. Some programs allow for higher loan to values and no penalties; this helps in easier qualification and lower interest rates for borrowers.

For this situation, Wyatt worked with the couple and the divorce attorneys to help refinance the property. She took extra attention to make sure the clients had a smooth experience by meeting with them regularly and sending hard copies in lieu of electronic methods due to their discomfort with computers.

To meet income and debt requirements, family members were added to the refi- nance and title.

The wife was removed from the mortgage and title and was paid out her equity based upon the divorce agreement at closing.

She will use her proceeds of the refinance on a down payment on a new property that she has already been approved for.

Although divorce is tough, the loan process doesn’t have to be.