Blog

When couples divorce, the marital home is often the single largest asset involved—and also one of the biggest sources of confusion. While one spouse may be awarded the home, both names often remain on the mortgage, leading to unforeseen complications when it comes to financing in the future.One solution that’s commonly misunderstood is the Simple Legal Transfer Assumption, protected under the Garn-St. Germain Depository Institutions Act of 1982. While this can help protect divorcing homeowners, it doesn’t automatically solve the issue of post-divorce mortgage liability. Without taking the right steps, both spouses could remain financially tied to the property long after the divorce is final.Why This Matters for Your ClientsMortgage guidelines do allow a borrower to exclude a jointly obligated mortgage from their debt-to-income ratio—but only when specific conditions are met. That typically includes documentation from the divorce decree assigning the debt to the other spouse, along with proof that payments have been made consistently for at least 12 months.Without this clear documentation, the vacating spouse could face serious obstacles in qualifying for a new mortgage.By including precise and intentional language within the divorce decree or property settlement agreement, the vacating spouse gains a significant legal advantage. This clarity helps mortgage lenders assess future qualifications and safeguards financial independence.The Importance of Proper Settlement LanguageTo help ensure a clean break, it’s critical that settlement agreements clearly document who is responsible for the mortgage moving forward. This language helps underwriters exclude the vacating spouse from liability, assuming the responsible party continues making payments as agreed.Here’s an example of the type of language often used: “Real Property Award and Mortgage Responsibility – The marital residence located at [address] shall be awarded to [spouse’s name] as their sole and separate property.”While this clause is common, it must always be customized by a qualified family law attorney.The Catch: The Mortgage Note Stays in Both NamesEven with the right settlement language, the original mortgage note remains in both parties’ names unless a formal refinance or loan assumption is completed. The Garn-St. Germain Act simply protects against lenders enforcing a due-on-sale clause due to divorce—but it doesn’t remove the vacating spouse’s legal obligation.In short: without a refinance or assumption, the vacating spouse remains legally tied to the mortgage even if they no longer own the home.How I Help as a Certified Divorce Lending Professional (CDLP®)At Integrity Mortgage, I specialize in helping homeowners and their advisors navigate the complexities of mortgage planning during divorce. As a Certified Divorce Lending Professional (CDLP®), I work closely with attorneys, financial planners, and divorcing homeowners to ensure everyone has clarity, confidence, and a strategy that supports long-term financial goals.If you’re a family law professional looking to better serve your clients, or if you’re navigating this yourself, let’s connect. Divorce is already complicated—your mortgage doesn’t have to be.Schedule your consultation today. Article sourced from https://www.divorcelendingassociation.com

How Divorce Affects Your Mortgage: What Family Law Professionals (and Homeowners) Should Know

Kellie Collins, CDLP&nbsp; &nbsp;Certified Divorce Lending Professional (CDLP®) | Mortgage Strategy for Divorce | Reverse Mortgage Specialist | Branch Manager at Integrity Home Mortgage NMLS #208516, CDLP//"Kellie, you seem like a good person… why would you offer reverse mortgages?"That was the question during a recent coffee meeting—and honestly, I appreciated it. It's a question that deserves an honest answer.The Simple Truth Over the years, I’ve had the privilege of counseling thousands of people about money, homeownership, and planning for the future.And one pattern keeps showing up: Most people don’t save enough to fully fund a secure retirement. But many did buy a good home, worked hard, and paid down their mortgage over time. In fact, for most Americans, the largest part of their net worth is in their home equity.That sounds great… until real life kicks in.Suddenly, that equity becomes crucial—whether it’s for retirement income, long-term care, medical expenses, or simply staying in the home they love.What Are the Options? When seniors need access to cash, these are the most common paths considered:<ul><li>Sell the home and downsize</li><li>Take out a HELOC</li><li>Refinance and take cash out</li><li>Live on credit cards Or… consider a reverse mortgage</li></ul>Each option has pros and cons—and none should be entered into lightly. But here’s the problem: many people dismiss reverse mortgages without truly understanding them.Why I Don’t Run From Them I don’t lead with reverse mortgages, and I never push them. But I do offer them as one of several tools—because for the right person, in the right situation, a reverse mortgage can be life-changing.I’ve worked with families who were facing bankruptcy, foreclosure, or simply running out of options. A reverse mortgage allowed them to stay in their home, reduce financial stress, and enjoy the retirement they worked so hard for.Strategy Over Sales This isn’t about selling a product—it’s about strategic planning.I often collaborate with financial advisors, adult children, estate attorneys, and CPAs to ensure the reverse mortgage conversation is part of a holistic plan—not a last resort.My mission is to give families clarity and confidence—not confusion and fear.Let's Talk Options If you or someone you care about is approaching retirement, don't make financial decisions in a vacuum. Get advice from someone who understands the full picture—not just one or two solutions.Reverse mortgages aren’t for everyone. But when they’re the right fit, they can make all the difference.Curious how they work? Let’s talk. I’d love to share what I’ve learned—no pressure, just clarity.-Kellie

Why I Offer Reverse Mortgages as a Solution When Others Run From Them

I picked my 12 year old from school yesterday. He just had to get home to print some items off for his "clients" at school. He has been printing fidget spinners and puzzles on his 3d printer and selling them for nominal fees to his classmates (AKA running his business).I told him about my business when I was younger and how my friend and I sold friendships bracelets to kids at school, then how we expanded to key chains and things like that. I was thinking he would be a little impressed or ask me some advice, but not my little entrepreneur. Without missing a beat he asked me what my profit margin was on my "little business". I replied "I don't know buddy, what's yours?"He proudly replied "Mine was pretty good, you know I have low overhead you bought my initial supplies...but I wanted to make it better so I started offering extended warranties on my products for an extra $2!" Big Grin Inserted here. "It also helps with my customer satisfaction knowing I will replace anything that breaks before the end of the school year."I may have listened to too many business books while pregnant with him.~Kellie <figure id="figure-7ifa8n1kgwma39dxxq" class="selected"><img id="7ifa8n1kgwma39dxxq" src="https://cdn.durable.co/blocks/6hhi5yv7ZXBhppT1Hv8AkpnKWdPDqOhht159xbxXqu8lmCDtoyf73In5874PRoa2.png" alt="" title="" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl selected" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/6hhi5yv7ZXBhppT1Hv8AkpnKWdPDqOhht159xbxXqu8lmCDtoyf73In5874PRoa2.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;" data-mce-selected="1"></figure>

Business Lessons From My Son

Life is good. Not perfect, but really good. I have two spunky tween boys who keep me on my toes, make me laugh, and push every button I didn’t even know I had. They are my world, my why, and the reason I work as hard as I do.Most mornings, I’m up before the sun, squeezing in a workout, a devotional, and a quick focus on my goals and gratitude for the day—because if I don’t carve out time for myself early, the day will totally take over. Occasionally, I even manage to fold some laundry, but if you walked into my house right now, you’d find a pile of clean clothes on the couch giving me judgmental looks. Oh, some battles just aren’t worth fighting.When it comes to work, I love what I do. Helping people navigate home financing—whether it’s a reverse mortgage for a senior, a new home after a divorce, or just a smarter way to purchase a new place to call home—is deeply fulfilling. But there’s one part of my job that still trips me up: making calls. It’s not just the cold calls to people I haven’t met; it’s making calls to people I know and care about. It can be paralyzing.A little background here… I’m an introvert. Yeah, right, you say? No, really, I am! I hide it well because I know my calling and my why are bigger than my fears. And despite years in this business, I still wrestle with the fear of reaching out—even to people I genuinely care about or new friends I want to connect with. Lately, that fear has been stronger than usual, and I’ve been working hard to push through it.So, if you get a call from me and it’s been a while, you now know it’s not because I don’t care or that I’m just focused on selling or making money. It’s because I’ve been staying close to my comfort zone… on a walk with my Goldendoodle, Merry. But I’ve decided: no more! I am pushing past my paralyzing fears. I may stumble, and that’s okay. I care about what’s going on in your life, and I’m doing my best to put my fears aside to check in on you.So here’s to progress, to small wins, and to giving ourselves grace—whether it’s in business, parenting, or ignoring that pile of laundry just a little bit longer. Want to grow with me? What are some of your roadblocks holding you back? Share them with me—I would love to know.Talk soon,Kellie

My Life, My Struggles, and Why I Might Call You Awkwardly

low angle photo of city high rise buildings during daytime

<h2>Understanding Reverse Mortgages</h2>Reverse mortgages can help homeowners over 62 achieve financial freedom in retirement. By converting home equity into a tax-free income stream, retirees can enjoy greater financial security.These loans allow homeowners to borrow against the value of their home. Unlike traditional mortgages, borrowers do not make monthly payments. Instead, the loan is repaid when the homeowner sells the house or passes away.It's important to understand the details and benefits of reverse mortgages before deciding if it's the right choice for you.<h2>Benefits of Reverse Mortgages</h2>Reverse mortgages offer several benefits. First, they provide a steady source of income. This can be especially helpful for retirees with limited savings.Second, the income from a reverse mortgage is tax-free. This means you can use the funds without worrying about additional tax burdens.Third, reverse mortgages allow you to stay in your home. You don't have to sell your house or move to access the equity.<figure id="figure-s6a7kwc2pam3c8s54c"><img id="s6a7kwc2pam3c8s54c" src="https://images.unsplash.com/photo-1514782831304-632d84503f6f?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxNHx8ZmluYW5jaWFsJTIwcGxhbm5pbmd8ZW58MHx8fHwxNzMxMjAzMTcyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="financial planning" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1514782831304-632d84503f6f?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxNHx8ZmluYW5jaWFsJTIwcGxhbm5pbmd8ZW58MHx8fHwxNzMxMjAzMTcyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>How to Qualify for a Reverse Mortgage</h2>To qualify for a reverse mortgage, you must meet certain criteria. You must be at least 62 years old. Your home must be your primary residence. Additionally, you need to have significant equity in your home.It's also important to undergo a financial assessment. This ensures you can meet the obligations of the loan, such as property taxes and insurance.<h2>Steps to Apply for a Reverse Mortgage</h2>Applying for a reverse mortgage involves several steps. First, you need to consult with a HUD-approved counselor. This step is mandatory and helps you understand the loan terms and conditions.Next, you will choose a lender and complete the application. The lender will appraise your home to determine its value. Finally, you will close the loan and start receiving payments.<figure id="figure-f0z9gi6x8bm3c8s6l3"><img id="f0z9gi6x8bm3c8s6l3" src="https://images.unsplash.com/photo-1632201526264-58acbd9eb619?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8c2VuaW9yJTIwY291cGxlfGVufDB8fHx8MTczMTI4MjMwM3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="senior couple" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1632201526264-58acbd9eb619?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8c2VuaW9yJTIwY291cGxlfGVufDB8fHx8MTczMTI4MjMwM3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Considerations and Risks</h2>While reverse mortgages offer many benefits, there are also risks to consider. The loan balance increases over time, reducing the equity in your home. This can impact your heirs' inheritance.Additionally, you must keep up with property taxes, insurance, and maintenance. Failure to do so can result in foreclosure.It's crucial to weigh these factors and consult with a financial advisor before proceeding.<h2>Conclusion</h2>Reverse mortgages can be a valuable tool for achieving financial freedom in retirement. They provide a steady, tax-free income stream and allow you to stay in your home.However, it's important to understand the terms, benefits, and risks. By doing so, you can make an informed decision that best suits your financial needs and goals.<figure id="figure-ibtzfyxvzm3c8s7xk"><img id="ibtzfyxvzm3c8s7xk" src="https://images.unsplash.com/photo-1484863137850-59afcfe05386?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxMnx8aGFwcHklMjByZXRpcmVlc3xlbnwwfHx8fDE3MzEyODIzMDR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="happy retirees" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1484863137850-59afcfe05386?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxMnx8aGFwcHklMjByZXRpcmVlc3xlbnwwfHx8fDE3MzEyODIzMDR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

Achieving Financial Freedom in Retirement with Reverse Mortgages

brown and white wooden table beside sofa chair

<h2>Understanding Reverse Mortgages</h2>Homeowners over 62 in the tri-county area have found a way to secure their retirement. They use reverse mortgages to turn home equity into a tax-free income stream. This financial tool offers them security and freedom. Let's explore how real people have transformed their retirements with reverse mortgages.<figure id="figure-mm5sckqm3c8tuaw"><img id="mm5sckqm3c8tuaw" src="https://images.unsplash.com/photo-1636013912260-a176d5e08408?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8cmV2ZXJzZSUyMG1vcnRnYWdlfGVufDB8fHx8MTczMTI4MjM4MHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="reverse mortgage" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1636013912260-a176d5e08408?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8cmV2ZXJzZSUyMG1vcnRnYWdlfGVufDB8fHx8MTczMTI4MjM4MHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Mary's Journey to Financial Stability</h3>Mary, a retired teacher, faced financial challenges after retirement. Her pension was not enough to cover her expenses. She learned about reverse mortgages and decided to use her home's equity. This decision provided her with a steady income. Now, Mary lives comfortably, without financial stress.Mary's story shows how reverse mortgages can be a lifeline. They offer retirees a way to maintain their lifestyle. By using home equity, retirees like Mary find peace of mind.<h3>John and Linda's Travel Dreams</h3>John and Linda always dreamed of traveling during retirement. However, they worried about their savings. They turned to reverse mortgages for help. By tapping into their home's equity, they funded their travel plans.<figure id="figure-tmm1xif5eqm3c8tvym"><img id="tmm1xif5eqm3c8tvym" src="https://images.unsplash.com/photo-1612817989685-ffa234bf3dbc?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwzfHxzZW5pb3IlMjB0cmF2ZWx8ZW58MHx8fHwxNzMxMjgyMzgyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="senior travel" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1612817989685-ffa234bf3dbc?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwzfHxzZW5pb3IlMjB0cmF2ZWx8ZW58MHx8fHwxNzMxMjgyMzgyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>Now, John and Linda explore new places without financial worries. Their story highlights how reverse mortgages can support personal goals and aspirations. Retirees can enjoy life to the fullest, thanks to this financial option.<h3>Securing Healthcare Needs</h3>Healthcare costs are a concern for many retirees. Tom, a retired engineer, faced unexpected medical bills. He used a reverse mortgage to manage these expenses. This decision allowed him to focus on his health instead of financial stress.Tom's experience demonstrates the practical benefits of reverse mortgages. They provide a financial cushion for unforeseen events. Retirees can ensure their health needs are met without draining their savings.<figure id="figure-s238kmect7m3c8txcm"><img id="s238kmect7m3c8txcm" src="https://images.unsplash.com/photo-1494438043283-22a3c46831a4?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw4fHxzZW5pb3IlMjBoZWFsdGhjYXJlfGVufDB8fHx8MTczMTI4MjM4NHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="senior healthcare" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1494438043283-22a3c46831a4?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw4fHxzZW5pb3IlMjBoZWFsdGhjYXJlfGVufDB8fHx8MTczMTI4MjM4NHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Steps to Consider</h3>If you're considering a reverse mortgage, here are some steps to take:<ul><li>Consult with a financial advisor to understand your options.</li><li>Evaluate your home's value and equity.</li><li>Understand the terms and conditions of the mortgage.</li><li>Consider how it fits into your long-term financial plan.</li></ul>These steps can guide you in making an informed decision. Reverse mortgages can be a valuable tool for financial security in retirement.<h3>Conclusion</h3>Real-life success stories show the positive impact of reverse mortgages. They help retirees achieve financial stability and personal goals. By using home equity, retirees can live with confidence and security.If you're over 62 and own a home, consider exploring reverse mortgages. They might be the key to transforming your retirement into a time of freedom and fulfillment.

Real-Life Success Stories: Transforming Retirements with Reverse Mortgages

Kellie Collins, Reverse Mortgage Specialist

I help homeowners over 62 turn their home's equity into a tax-free income stream through reverse mortgages, providing financial security and freedom in retirement.

Blog

How Divorce Affects Your Mortgage: What Family Law Profes...

Why I Offer Reverse Mortgages as a Solution When Others R...

Business Lessons From My Son

My Life, My Struggles, and Why I Might Call You Awkwardly

Achieving Financial Freedom in Retirement with Reverse Mo...

Real-Life Success Stories: Transforming Retirements with ...