Avoiding a Contempt of Court Issue with Divorce and Real Estate. Divorce is a complicated thing, you should work with a team of professionals, not just an attorney.
A Contempt of Court issue when a former spouse fails to execute their obligations in the marital settlement agreement of a divorce with regards to real estate and mortgage financing can be avoided if the right steps are taken in advance. There are many times when mortgage financing is a requirement post divorce decree whether it involves refinancing the marital home to remove a spouse from the current mortgage, completing an equity buyout, or even for the purchase of a new home for one or both parties.
Unfortunately, often times the successful execution of mortgage financing requirements fail during a divorce. It fails not because of a lack of effort on behalf of the divorcing parties, but rather on other details within the marital settlement agreement. The two most common reasons why divorcing clients are unable to successfully obtain mortgage financing have to do with qualified income and credit. The best way to avoid these issues is to consult with a qualified divorce lending professional during the settlement process rather than after the martial settlement agreement is final—this can make a big difference in ensuring the successful execution of the marital settlement agreement and avoiding a possible Contempt of Court issue.
Please let me know if I can provide additional information to you on the various methods for holding ownership/title on real estate and the effects that divorce can play on this topic as well. Visit this page learn more about Divorce and Your Mortgage.
Richard Woodward, NMLS 217454
Your Local, Direct, 5 Star Rated Mortgage Lender, Specialty Lending Manager
Office: (214) 945-1066
Service First Mortgage NMLS 166487
6800 Weiskopf Ave #200, McKinney, TX 75070
Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice. The views expressed on this site are those of the individual author and do not necessarily reflect the positions, strategies or opinions of Service First Mortgage or its affiliates.