Divorce

[2020]

I received a conventional refi 1004 assignment. I contacted the borrower to schedule the inpsection and they said to cancel because their divorce was not final yet and she needed to wait until after the divorce is final. So a few days later the borrower contacted me and said she would like to proceed because she and the attorney discussed the entire marital interest and it is okay to proceed. Is there any issue with this?

 

[Terrel L. Shields]

Call your client first - borrower is not client OTOH, since a divorce I would just decline - I did a refi once only to get called to court when they split a few weeks later although the report was for a lender- wasn't paid a dime and was a real hassle.

 

[sputnam]

I received a conventional refi 1004 assignment. I contacted the borrower to schedule the inpsection and they said to cancel because their divorce was not final yet and she needed to wait until after the divorce is final. So a few days later the borrower contacted me and said she would like to proceed because she and the attorney discussed the entire marital interest and it is okay to proceed. Is there any issue with this?

Nope. Sometimes the lawyers will want the effective date to be as of the date if separation. If they don't tell you differently, make the effective date as of the date of your inspection. If you want to be sure.... ask.

One thing to keep in mind, since there's an divorce involved, you may be asked to provide testimony in court. Make sure you get a fee committment from the attorney before you testify. If they try to play games... just ask them if they'd rather have you there as a hostile witness or as a paid expert witness.

 

[J Grant]

I received a conventional refi 1004 assignment. I contacted the borrower to schedule the inpsection and they said to cancel because their divorce was not final yet and she needed to wait until after the divorce is final. So a few days later the borrower contacted me and said she would like to proceed because she and the attorney discussed the entire marital interest and it is okay to proceed. Is there any issue with this?

What client did you receive the conventional refi 1-004 from?

If it is a regular, conventional lender loan purpose assignment, the owner's divorce is not relevant. Their drama just created an access issue, which has been resolved.

The only issue is tuning out any pressure or sob stories (if they are there ) from the borrower when you do the inspection. Keep your cool, do not talk to them beyond what is minimal, do not get engaged in value discussions etc, If they keep trying to engage you, say you have another appointment to make, finish your work, wish them a good day, and get the heck out.

 

[Deleted member 126639]

Call your client first - borrower is not client OTOH, since a divorce I would just decline - I did a refi once only to get called to court when they split a few weeks later although the report was for a lender- wasn't paid a dime and was a real hassle.

So you invoked jurisdictional exception to justify violating client confidentiality?

 

[J Grant]

So you invoked jurisdictional exception to justify violating client confidentiality?

You guys are over complicating things.

From what the OP posted ( I hope they return to clarify ) from what they posted, this is a regular conventional refinance loan 1004 form assignment with a lender client,. The OP just ran into an access issue with the borrower blabbing to them about their divorce.

 

[sputnam]

You guys are over complicating things.

From what the OP posted ( I hope they return to clarify ) from what they posted, this is a regular conventional refinance loan 1004 form assignment with a lender client,. The OP just ran into an access issue with the borrower blabbing to them about their divorce.

Maybe.... or maybe not. The OP did mention 'attorney'.

 

[J Grant]

Maybe.... or maybe not. The OP did mention 'attorney'.

Yes, because they are confused. The fact that they are confused by borrower mentioning attorney and divorce means perhaps they should skip this assignment. .

The only time in my career I got dragged into court was when I did a refinance appraisal for a borrower - who owned the property in a family trust. I was inexperienced at the time, and the borrower followed me during the inspection, telling me a sob story about the antics of siblings trying to get the property away from her. I naively gave a piece of advice to her owner regarding the property.

Soon after it became an estate situation ( one of the owners died ), and the sibling she was talking about sued the appraisal firm (I worked for a firm at that time ) saying our value opinion was influenced by the borrower . The judge said the value was supported and dismissed the case . It was a family drama, but it can suck someone in. - if I had kept my mouth shut, it would not have happened.

The fact the borrower already told in detail to appraiser their divorce story means the appraiser has to take great care to say nothing other than hello good bye thanks for letting me in to this borrower, if the borrower follows appraiser around blabbering and trying to influence, can the OP manage to keep quiet ?

 

[Tom D]

the borrower on the appraisal is one of the partners. my little experience has been 1 low appraisal, i high appraisal. don't ask how that always happens, but the judge usually meets in the middle.
i will not do those appraisals, too much trouble in the long run, if you haven't been thru that before. of course nothing may happen. you're appraisal is supposed to be neutral for a loan, but somehow you have learned about the divorce. the perception of any influence isn't easy to defend.

 

[J Grant]

the borrower on the appraisal is one of the partners. my little experience has been 1 low appraisal, i high appraisal. don't ask how that always happens, but the judge usually meets in the middle.
i will not do those appraisals, too much trouble in the long run, if you haven't been thru that before. of course nothing may happen. you're appraisal is supposed to be neutral for a loan, but somehow you have learned about the divorce. the perception of any influence isn't easy to defend.

If this is a regular 1004 refinance for a lender client, the borrower does not become a partner in it just because they happen to be getting a divorce

A borrrower privately ordering an appraisal for their divorce purpose use is a different matter.