IL, Single-Family, Refinance, $175K, 748 FICO, 65% LTV
Posted on 11/7/2013 3:16:32 PM
I have a divorced woman who is required to refinance her mortgage to take her ex-husband off the obligation. They were divorced in 2011. She is a part-time fitness class instructor ($500/mo.), 2 daughters (from her ex-husband) and taking court stenography classes that she will have completed by December of 2014.
She is receiving Unallocated Support “Beginning October 1, 2011 and each month thereafter until September 30, 2014”($4500/mo). The divorced parties have two children 17 & 13. The borrower is certain that the support will continue after this date because she has custody of the children and at least one child will be under age. The children both are expected to go to college. There is no mention of support after September 30, 2014 other than “The borrower has the right to petition the court for an award of maintenance following the expiration of the unallocated family support. She shall file such a petition before September 30, 2014. If she fails to file a petition before a court jurisdiction, she shall be forever barred from the receipt of further maintenance.” The borrower has assured me that she will petition the court.
The borrower also receives Child Support in the amount of 15% of Gross wages minus $190,000. This basically captures a portion of an annual bonus. This payment does not have an expiration date and is due for as long as the ex-husband is obligated to pay child support. After there is only one remaining minor child the child support will be 10% of Gross wages minus $190,000.
There is documentation of 12 months on the Unallocated Support and the borrower does not need the Child Support to qualify.
• There is 35-40% equity in the property.
• I have proof of 12 months of Unallocated support payments.
• The borrower has over $40,000 in savings.
• The borrower’s ex-husband is selling their property in Australia to finalize the equal disbursement of assets. I am told the property is under contract and should be closing any day now. I might be able to get a copy of the contract. I am also told that there will be a $150,000 payment to the borrower when the property is sold.
• Middle credit score is 748.