A rule that lenders use to determine whether a person’s alimony and/or child support income can be used to help them qualify for a loan. The rule states that the support income must have been paid consistently for the past six months, and will continue to be paid to the spouse for a minimum of 36 months from the date of the loan application.
A mortgage loan whose interest rate fluctuates according to another rate.
The ALTA settlement statement is an itemized list of all of the fees or charges that a buyer and seller will pay during the settlement portion of a real estate transaction. Learn more at https://www.alta.org/trid/.
A change, correction, or extension of an agreement that does not modify the basic thrust of the agreement.
A table that shows the periodic payment, interest, and principal requirements, and unpaid loan balance for each period of the life of a loan. Learn more about amortization.
A professional opinion or estimate of the value of the property performed by a certified appraiser, required by most lenders before they will issue final loan approval. It includes physical measurements and photos of the land and structures, sometimes includes permit and zoning research, and always contains detailed information about the suitability and value of the home. See also: What does an appraiser do?
A clause in the purchase agreement contract stating that the home will be purchased without any repairs being made.
A property owner’s misuse of land or structures that causes a deterioration of that property’s value.
A computerized method for estimating the value of a property. These assessments are based almost entirely on public information and comparables. AVM products do not account for the actual condition or location of the property, zoning, or any past upgrades, unless they are listed on public record. Zillow’s Zestimate is an example of an AVM.
A court order that automatically and immediately takes effect upon serving a summons for divorce. ATROs protect both spouses by preventing either from engaging in certain behaviors that might result in sabotage.
Figuratively, a body of attorneys. Bars are regulated by local bar associations which are committed to promoting and maintaining the practice of law by developing and enforcing ethical guidelines and rules, providing ongoing training and seminars, and providing a social and professional network for attorneys.
Figuratively, a body of judges.
A separate trial conducted to settle a smaller matter within a larger case.
The act of one joint property owner purchasing the equity interest of the other joint owner.
A mortgage lender who has been specially trained and certified to navigate complicated and/or contentious real estate transactions during a divorce. The CDLP typically works with the spouse who wants to keep the home.
Certified Divorce Real Estate Expert: a real estate agent who has been specially trained and certified to navigate complicated and/or contentious real estate transactions while the homeowners are embroiled in a divorce. The CDRE may or may not be court-appointed. The CDRE may also serve as an expert witness.
The historical progression of a property’s ownership; each owner represents one link in the chain.
A title free of clouds and disputed interests.
Transferring ownership from the seller to the buyer according to the sales contract.
Any document or claim that calls to question the right of a person or persons to the sole ownership of a property’s title. For instance, a cloud will appear on title if a construction lien is placed against a property for the purpose of collecting a debt for work performed on that property. Learn more about title problems that can delay your home closing.
Generally, property acquired during the marriage.
An estimate provided by a real estate agent. The assessment is based primarily on comparable properties and information found in the Multiple Listing Service (MLS). It may or may not include a cursory visual inspection of the property, and typically does not include measurements, permits or zoning research.
Homes with similar properties based on location, square footage, age, condition and other factors that help determine the approximate value of a home.
Rules written into the deeds or bylaws that define how a property may be used. They may prevent property owners from making changes to their individual properties.
A formal action meant to punish an individual for not obeying a court order.
Provision(s) in the contract that some, or all terms of the contract will be altered or cease to exist upon a certain event.
The ownership transfer of real property from one party to another, such as through a deed.
In addition to the actual court room, it may also refer to the Judge.
The measure of a person’s current income vs. the amount of debt they carry. This comparison is used to measure a buyer’s ability to afford a loan.
A court’s final judgment. In the case of divorce, a decree is the judge’s official order granting—and laying out the terms for—a divorce.
A written document, properly signed and delivered, that conveys TITLE to real property.
Failure to pay a debt.
The person against whom the case if filed.
A type of loan modification in which a balloon payment of deferred principal is due upon the sale of the home.
Another word for divorce.
Domestic violence temporary restraining order.
Order An order removing one spouse from the family residence.
An encumbrance is anything that restricts a property owner from full, “unencumbered” use of their land. Encumbrances result in clouds on a property’s title and may affect the resale value of said property. Encumbrances are typically liens, easements, restrictions, and encroachments.
The act of making things equal. In divorce, an equalization payment may be made by one spouse to the other in order to balance the value of the assets they each keep in the settlement.
The value of a home minus any monies that need to be paid when the property is sold.
Emergency hearing or communication with only one party or attorney.
A term, generally used in property tax and condemnation legislation, meaning the market value of a property.
Federal National Mortgage Association: A government-sponsored enterprise that helps low- to moderate-income buyers obtain mortgages by buying and guaranteeing mortgages from large retail banks through the secondary mortgage market. Learn how Fannie Mae works.
A Federal Housing Administration (FHA) loan is a type of government loan that helps low-income buyers and buyers with low credit scores, short sales, foreclosures, or bankruptcies in their history to acquire their first homes. FHA loans are insured by the Federal Housing Administration. Learn more about FHA loans.
A type of credit score that is used to determine a borrower’s ability to repay a loan. When determining creditworthiness, FICO scores incorporate the following buyer behaviors: payment history, debt level, types of credit used, length of credit history, and number of new credit accounts opened. FICO scores are used by the three largest credit bureaus: Experian, Equifax, and Transunion. Learn more
One person’s responsibility to act in the best interest of another. In real estate, an agent’s fiduciary duty typically involves selling a client’s property for the best possible price, or helping a client buy a property for the lowest possible price. In each case, the agent is expected to adhere to the highest ethical standards and operate with the utmost care, integrity, honesty and loyalty.
A detailed final inventory of assets and debts that must be submitted to the court at or near the end of a divorce proceeding.
A claim against community property that ensures payment of attorney’s fees.
The estimate of what a property might be worth in terms of rental income. Fair market value can be determined by the property owner, but a list is also calculated and published by HUD.
From Wikipedia: Forbearance, in the context of a mortgage process, is a special agreement between the lender and the borrower to delay a foreclosure. Learn more about the pros and cons of mortgage forbearance under the 2020 CARES Act.
Federal Home Loan Mortgage Corporation: A government-sponsored enterprise that helps low- to moderate-income buyers obtain mortgages by buying and guaranteeing mortgages from small thrift banks through the secondary mortgage market. Learn more about Freddie Mac.
Someone who steps in for one of the parties due to the temporary or permanent inability of a party to speak for themselves.
A financing program geared toward helping homeowners make energy- and water- efficient improvements to their homes. HERO loans are attached to the mortgage as a tax lien, which means that the balance either needs to be paid off at the time of sale, or passed on to the new homeowner. HERO is a type of PACE loan.
Founded by Laurel Starks, the goal of Ilumni Institute is to train Realtors to support family law attorneys through effective management of divorce real estate transactions. Learn more.
In Re Marriage Of
A formal complaint bring in a necessary party to the case (in addition to the parties).
The final order of the court ending the marriage, dividing assets and debts, establishing child custody, establishing child support and spousal support, awarding attorney fees, etc.
An order removing one spouse from the family residence.
A claim against a property in order to secure a debt.
Discharge happens when the county records removes a lien from a property so that the property may transfer to a new owner free of that lien.
When an attorney represents a client for only one hearing or only one issue.
A notice filed with the court that states a lawsuit has been filed against a piece of real estate. A lis pendens typically challenges the title of the property or attempts to establish a claimed ownership interest in it.
A restructuring of a mortgage that makes it easier for a borrower in financial crisis to repay the loan. A loan modification can negatively impact a borrower's credit.
A mandatory meeting of all parties involved in a case that is meant to explore different settlement options.
An electronic database of homes listed for sale. Your agent’s MLS will be more accurate and up-to-date than public systems like Zillow or Realtor.com, but may not include homes listed for sale by owner. Homebuyers can only access the MLS through a licensed real estate agent.
An entity who lends money for the purpose of purchasing real estate; the mortgage lending institution.
The owner of real estate with a mortgage; one who pledges property as security for a loan; the borrower.
When the children of a divorced couple remain in the house and the parents move in and out.
The cash payout a seller receives at the close of escrow. Typically, the difference between the selling price of the home and the costs involved in selling it, such as mortgage payoffs, taxes, commissions, and closing fees.
The spouse who remains in the marital home during or after a divorce.
Principle and Interest on a loan; typically the highest part of the payment.
Clean energy renovation loans. PACE loans are attached to the mortgage as a tax lien, which means that the balance needs to be paid off at the time of sale or passed on to the new homeowner.
The people / entities involved in the case
The person who initiates the case.
A person who represents themself.
Legally acceptable identification of real estate by one of the following:
* the government rectangular survey
* Metes and Bounds
* recorded Plat (Lot and Block number)
Orders dividing pensions / retirement funds
A document that terminates a person’s interest in (or claim to) a property. A quitclaim is typically used to transfer ownership within a family, often from one spouse to another during divorce. With a quitclaim, the person is literally quitting their claim to any rights to the property.
When the court retains jurisdiction over a certain issue.
The intentional destruction of property, proceedings, or any other aspect of a divorce proceeding, typically for the purpose of destroying one or both spouses’ equity position(s) in the property.
Another type of punishment, it can be monetary in nature, or evidentiary
Someone appointed by the court to assist with a particular issue.
Keeping things the way they are.
A written agreement reached between the parties, filed with the court, and made an order by the judge.
The official document that describes the manner in which ownership of a property is held.
The judge (or in some jurisdictions the jury, or assistant judge.)
Temporary Restraining Order
A person who verifies the risks of lending to a borrower/home buyer. Underwriters review the buyer’s credit history; order the home appraisal; verify income, employment, and savings; and calculate the borrower’s debt-to-income ratio. Underwriters work on behalf of the lender.
Investopedia defines underwriting as, “…the process through which an individual or institution takes on financial risk for a fee. The risk most typically involves loans, insurance, or investments.”
The process of identifying how much a property is worth. Valuations can be determined by automated systems (AVMs), appraisers, or real estate agents. When valuation is provided by a real estate agent, it’s called a CMA.
Special examination (questioning) of someone who is being vetted as an expert witness.
A court order requiring an employer to withhold support payments from a person’s wages. Sometimes referred to as attaching or garnishing wages.
A legal mechanism for local governments to regulate the use of privately owned real property.
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