A Certified Divorce Lending Professional plays a critical role in guiding divorcing homeowners
through complex real estate and mortgage issues. Their expertise helps ensure that both parties
understand their rights, obligations, and opportunities. Specifically, a CDLP® can:
Explain Legal Protections: Clarify the provisions of the Garn-St. Germain Act and how
they apply to ownership transfers.
Assist with Successor in Interest Recognition: Help homeowners submit the proper
documentation to lenders to gain access to mortgage information.
Explore Mortgage Solutions: Identify options for refinancing, equity buyouts, or loan
modifications based on underwriting guidelines.
Reduce Financial Risk: Provide strategies to prevent ongoing liability for both parties,
ensuring that financial responsibilities are clearly defined and manageable.
08 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
Many divorcing homeowners prefer a Legal Simple Transfer Assumption because it allows for a
smoother transition of ownership without the need to refinance the mortgage. However, this
option has limitations, including the fact that the original borrower(s) remain legally liable for
the debt. In contrast, a refinance or formal qualifying assumption can remove one party from
the mortgage, fully transferring financial responsibility to the remaining spouse. While
refinancing offers this benefit, it may also come with challenges such as:
Meeting current income and credit requirements
Higher interest rates due to market changes
Additional closing costs
Benefits of a Legal Simple Transfer Assumption vs. Refinance
How a CDLP® Supports Divorcing Homeowners