While COVID-19 has created challenges for many ranging from physical, emotional, personal to professional, those navigating the divorce process in Chicago are finding that Chicago property division in an uncontested divorce or contested divorce is creating the same problem. You want to ensure to retain a Chicago divorce attorney that is closely following regulation and legal changes in other areas, such as property division in real estate, to ensure that you are well-versed in your options. The changes that are happening in divorce financing are impacting more than one area that can impact your case.
If you or your spouse are in a situation where one party has agreed to a Chicago property division that includes a buy-out or refinance of a jointly-held mortgage? While mortgage companies are constantly changing their regulations and lending practices and procedures at a rapid rate, they are oftentimes ahead of legal statutes and regulations. These changes can directly impact your divorce process in Chicago as those who were being approved for buy-outs are losing that approval as regulations changed due to COVID-19, forcing them to reconsider whether or not they will qualify.
The new Rule of 6/36 is when your maintenance or support income received in your uncontested divorce or contested divorce is necessary for loan qualification. COVID-19 is not only impacting refinance and buy-outs, but underwriters and their guidelines are impacting the divorce process in Chicago. Support or maintenance payments must have been paid for the previous six months, documented, and must continue for at least 36 months. Due to the economic hardship that many families have faced, child support, maintenance and overall support of families going through or after the divorce process in Chicago are seeking modifications to support due to their inability to pay. Ceasing or changing these payments violates the Rule of 6/36 and the rise is the decline of buy-out loan applications is being felt by many of the Chicago divorce attorney teams.
Many people elected to cease or delay their mortgage payments during the period provided by some banks holding their mortgages. Unfortunately, electing to participate in delaying or ceasing mortgage payments, also known as forbearance, is helpful in the short-term when finances are tight and parties are discussing Chicago property division. However, it is not forgiveness, and taking advantage of this option is impacting the ability of many to qualify for a buy-out.
Lenders are taking a closer look at employment status and verifications regarding employment, including income, how many hours are worked, any changes in either these past months, loss or decrease of bonus or commissions, temporary furloughs, and health-related opt-outs for work. In fact, some lenders are now doing more than one employment verification, including just 24 hours before funding.
If you are contemplating retaining a Chicago divorce attorney then you want to find the best divorce lawyer to fit your needs, whether that be initiating a divorce action, navigating through the divorce action or addressing post-decree issues. Reach out to Jennifer R. Ward of Ward Family Law, LLC for a free initial consultation to discuss your case, in confidence, at firstname.lastname@example.org.
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