This letter can be used by lenders (as it’s written) or adjusted slightly for real estate agents. This is a great TEAM opportunity.
Divorce isn’t a pleasant topic or time for anyone involved. Sometimes providing positive solutions will lighten the burden for those involved.
Letter: Potential Sellers When Divorce Is Occurring
City, ST ZIP
JUST BECAUSE YOU ARE SEPARATING DOESN’T MEAN THAT YOU HAVE TO GIVE UP YOUR CREDIT!
My name is (lender name), and I am a senior loan officer at (mortgage company) here in (city). In my effort to benefit a wider range of clientele, I have taken the liberty to examine public records that have been filed in regard to all divorces in (city).
I am writing because I understand the many challenges resulting from a divorce, especially those that involve the disposition of real estate. To help you through this confusing process, I wanted to give you a few pointers:
- Did you know that if title passes to the vacating spouse by way of a “Quit Claim Deed,” or “Grant Deed” that these deeds only affect the actual title to the property and do not transfer the loan to the remaining spouse? Your name will still be on the loan!
- Did you know that if you change title by a Quit Claim Deed, both parties who originally signed the loan are still liable for repayment of the loan. In fact, both can be harmed by a future foreclosure, a nonpayment of the mortgage, or believe it or not, even a late payment. Both of the original signers of the note are still wholly and separately responsible for the repayment of an existing mortgage, even though title has passed by way of a Quit Claim or Grant Deed. A Quit Claim or a Grant Deed removes someone from title, but not from the loan!
- Did you know that if I refinance the property for you, the person who is leaving the property will actually be removed from the current mortgage obligation and can even be removed from title in the same transaction? Refinancing allows the party leaving to be completely freed, not only of the real estate, but also of the loan.
- If you allow me to refinance the property, I could enable the spouse who stays in the property to pay off the spouse who is leaving with the existing equity in the property. This sometimes eliminates the need to have the court direct the disposition of your assets, retirement plans, pensions, etc. The ability to use the equity in the home, because it has been freed up by a refinance, can be the great equalizer in the possible inequities of other asset transfers in a divorce.
- Sometimes I can obtain a lower interest rate than what you have currently, thus allowing you all the above benefits WITH A LOWER PAYMENT!
- Refinance costs are tax deductible!
Because there are so many different refinancing options available, all parties in the divorce need to be personally counseled on the pitfalls and the opportunities in these real estate transactions. I can even help with a new loan for the vacating spouse.
For many years, I have helped clients like you move ahead in their lives. I hope you do not take this letter as an attempt to profit from your pain; it is an attempt to lessen the pain caused by wrong real estate decisions that I have personally witnessed for years.
When you call me, you are calling on a resource that is just the beginning of a long real estate relationship.
Please utilize my services at your convenience. You will be pleased with my unbiased approach and respect for your privacy. Once I hear from you, I will also be happy to talk with any attorneys involved, if you would like.
P.S. I work extensively with the area’s most experienced brokers, and I can help you receive free information from impartial agents and help you accomplish services such as your appraisals, marketing plans, and lists of available real estate for sale and rent.
Our book Fast Lane Buyer Systems includes numerous forms, letters, and checklists to share with your clients and potential clients; also included are items to draw buyers (and sellers) to your website.
Call us at 800.792.5837 and ask for the blog special to get this book for just $50.