Mortgage and Divorce

Going through a divorce is hard, and in most situations it is quite stressful. With no need to sugarcoat, divorces can be one of the most stressful events a person can possibly go through, and it affects your every day to day tasks. Sadly, a home usually plays an important role of a divorce settlement. Your mortgage will play a significant role in the preceding events. We know that it may be hard to lighten the emotional stress of a divorce but below are some helpful insights and options that can be useful if you are in this situation. 

Your home equity matters

When going through a divorce, it’s most valuable to know and determine your home’s equity. This information is valuable to know for either party. The best option is to get an appraisal from a professional. They will let you know how much equity your home holds. This may make your divorce settlement a little bit easier as a couple knows how to split the equity and pay off mutual debts. 

Partner compensation 

If the home was purchased together, the partners need to decide who keeps the home or how the proceeds from it’s sale will be split. If the couple has agreed to split the home 50-50, the spouse who decides to keep the house will have to buy out the other person’s portion of  the mortgage. In many cases, applying for a cash-out refinance can provide  the money needed to compensate the other partner. Of course there are many other factors and circumstances that will determine what you can qualify for in a home loan. Contact us today at America’s Moneyline and we will be more than happy to walk you through the steps and provide guidance that is best for you.

Neighbor removal on mortgage

If you were the spouse to leave the residence and your name is still on the mortgage you are legally bound and held responsibility for it. It “power” to  negatively impact your debt to income ratio and your credit score. Only a mortgage broker or lender can legally remove your name. This process is usually accomplished through a refinance. At  America’s Moneyline we can walk you through different scenarios and let you know which loan options are best for you.

If selling your home is required…

If either spouse finds themselves not able to qualify for the mortgage independently, or simply doesn’t want to be the primary owner of the home, the home will need to be sold. You may not be aware that there are costs associated with selling a home. Costs can include a real estate agent’s commission, necessary repairs, unpaid taxes or many other issues that need to be decided regarding the property. It may be decided in writing  that both spouses split the earnings from the home. After the sale of the home is complete, and the mortgage is paid off both parties will then be able to collect their share of the profits.

At America’s Moneyline we want to remind you that there is life after divorce. Keep in mind we are here to handle all logistics of your mortgage. Depending on the state that you live in there may be some support options for you. During this hard time please remember to be patient and continually surround yourself with people who are positive and who will support you. 

Contact us today! We are here to help with all your mortgage needs.