DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW
10 PART SERIES
Divorce and Separation
PART VII
ERI C L AWRENCE F RAZ I ER, MBA PR ES I DENT | CEO| B ROK ER C A L D RE 0 1 1 4 3484 | N M L S 4 6 1 8 07 8 0 0 - 401- 8994 E X T. 7 0 3 T HE P OWER I S N OW I N C. CA LD RE 1 9 8 0 407 | N M LS 1 4 3 5 243
INTRODUCTION ERIC LAWRENCE FRAZIER, MBA President | CEO | Broker CALDRE 01143484 | NMLS 461807 THE POWER IS NOW INC. CALDRE 1980407 | NMLS 1435243 MEDIA COMPANY ESTABLISHED 2009 Radio | TV | Magazine | Events | Mortgage Services | Real Estate Services ADDRESS: 3739 6th Street Riverside, CA 800-401-8994 ext. 703 eric.frazier@thepowerisnow.com 4
PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407). The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an Equal Housing Lender. Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-4018994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484). Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.
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YOUR RESOURCE FOR REAL ESTATE WE ARE PROUD SPONSORS OF THE OC REALTIST CHAPTER OF NAREB
THE POWER LUNCH
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MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.
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VISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.
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OUR COMPANY MANTRA
WE ARE AT OUR BEST AND WE MAXIMIZE OUR SUCCESS WHEN WE ACT NOW. OUR POWER IS NOW! 18
OUR COMPANY SLOGAN
WE MAKE HOMEOWNERSHIP DREAMS A REALITY
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INTRODUCTION As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.
www.applytobuynow.com www.neverleaseagain.com
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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW
10 PART SERIES
10 PART CREDIT SERIES
Collection Accounts
Judgements Tax Liens
Bankruptcy 7 and 13
Foreclosure and Short Sales
Credit Counseling Mortgage Credit
Debt and obligations
Divorce and Separation
Student Loan Debt.
Strategies to improved your credit scores.
Strategies to Save Money to Prevent Credit Issues
Divorce and Separation
PART VII
DIVORCE AND SEPARATION Marriage and divorce are both common experiences. In Western cultures, more than 90 percent of people marry by age 50. Healthy marriages are good for couples’ mental and physical health. They are also good for children; growing up in a happy home protects children from mental, physical, educational and social problems. However, about 40 to 50 percent of married couples in the United States divorce. The divorce rate for subsequent marriages is even higher. https://www.apa.org/topics/divorce/ http://www.pewforum.org/religious-landscape-study/marital-status/
DIVORCE AND SEPARATION First-time home buyers looking into an FHA mortgage soon learn about a variety of requirements. •Some are the rules set by a particular lender – Credit Overlays •The rules of the Department of Housing and Urban Development •The state laws that govern retail banking procedures
DIVORCE AND SEPARATION Of these guidelines, it's usually the state laws that can vary the most One example of this is the "nonpurchasing spouse" rules in certain states. Did you know that depending on where you live, an FHA home loan may require the signature of your spouse on FHA loan paperwork even if the spouse isn't a co-borrower or co-signer?
Can I buy a house if my divorce is not final? YES!
CAN I BUY A HOME IF MY DIVORCE IS NOT FINAL? YES •A divorce divides a family into two separate households, which usually requires at least one spouse to find another residence. •If you are considering buying a new home before your divorce is final, carefully evaluate all the potential complications that can arise from acquiring such a significant asset while the divorce case is pending.
CAN I BUY A HOME IF MY DIVORCE IS NOT FINAL? YES •If you buy a new house before the divorce is final and without taking proper precautions, the court might deem it marital property and divide it accordingly. https://info.legalzoom.com/buyhouse-getting-divorced-25231.html
Can I buy a house if married but separated? YES!
CAN I BUY A HOUSE IF MARRIED BUT SEPARATED? YES In cases where community property laws apply, the lender will likely require additional documentation from the borrower as to the current legal status of the borrower. California is a community Property State so we need the spouse’s involvement.
The lender will need to see any written agreements pertaining to child support, alimony or other types of payments if the recipient wants such payments to be counted as income.
CAN I BUY A HOUSE IF MARRIED BUT SEPARATED? YES •FHA Guidelines require the spouse's debt to be considered in borrower's "qualifying ratios". •A community property state is most likely to include this requirement; •Community property basically require all property in common to be owned on a 50-50 basis as a result of the marriage. • Under the law in community property states, each partner has liability for the other spouse's debts.
FHA Underwriting Requirements
FHA REQUIREMENTS •The Lender must obtain a fully executed copy of the Borrower’s final divorce decree, legal separation agreement, court order, or voluntary payment agreement with documented receipt. •When using a final divorce decree, legal separation agreement or court order, the lender must obtain evidence of receipt using deposits on bank statements; canceled checks; or documentation from the child support agency for the most recent three months that supports the amount used in qualifying.
FHA REQUIREMENTS •The Lender must document the voluntary payment agreement with 12 months of cancelled checks, deposit slips, or tax returns. •The Lender must provide evidence that the claimed income will continue for at least three years. The Mortgagee may use the front and pertinent pages of the divorce decree/settlement agreement and/or court order showing the financial details.
INCOME CALCULATION – COURT ORDERED •When using a final divorce decree, legal separation agreement or court order, if the Borrower has received consistent Alimony, Child Support and Maintenance Income for the most recent three months, the Lender may use the current payment to calculate Effective Income.
INCOME CALCULATION - VOLUNTARY When using evidence of voluntary payments, if the Borrower has received consistent Alimony, Child Support and Maintenance Income for the most recent six months, the Lender may use the current payment to calculate effective income.
INCOME CALCULATION VOLUNTARY/COURT ORDERED •If the Alimony, Child Support and Maintenance Income have not been consistently received for the most recent six months, the Lender must use the average of the income received over the previous two years to calculate the effective income.
•If Alimony, Child Support and Maintenance Income have been received for less than two years, the Lender must use the average over the time of receipt.
Divorce and Separation
PART VII
DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW
10 PART SERIES