Divorces are tough. They are tough emotionally. They are tough legally. They are tough financially. One of the many issues to face is what to do with your real estate. The marital home is probably one of your largest assets.
How do you handle the mortgage? Making this decision prior to finalizing your divorce ensures both you and your ex set out on this new chapter with a solid financial foundation.
There are several options on how to handle the mortgage and property in the case of divorce. It’s always important to discuss your personal situation with a professional so you make an informed decision that offers you the best outcome.
This is usually the easiest way to break up the mortgage and property from a legal and financial viewpoint. On the emotional front, it isn’t always the easiest especially if you have fond memories tied to your home – like raising your children there.
For this option, one of you would need to be able to refinance the home under your own name. This means you or your ex would need to be able to qualify for a mortgage on your own.
If you’d like to keep the home and refinance, there are some things you should consider before making your final decision. Will you and the property itself be eligible for a refinance? Can you afford to make the monthly mortgage payments? Are you prepared to handle the maintenance on the home? If something big breaks, will you be able to get it fixed?
If you’d like to keep the home and refinance, there are some things you should consider before making your final decision. Will There are many specific mortgage guidelines for refinancing your home like qualifying income, property value, and the current debt on the house. The first step is to contact a local mortgage lender who will be able to help you determine whether you can qualify to refinance the home on your own.
The Alpha Center has a directory of recommended lenders. By choosing one of these lenders, you know that your loan officer will do everything to ensure everything goes smoothly.
If you are not the one staying in the house, it is crucial that your ex acquires a new mortgage without your name on the loan. While it’s not advised to trust that your ex would make the payments on a loan with both your names tied to it, there are several other considerations.
By having your name still on the loan for your former home, you will likely run into issues with renting or buying a new home for yourself. If your name is still on the loan, you are still seen as having that debt.
Divorce is messy, and it can be complicated. This is exactly why it’s so important to work with an experienced team like the Alpha Center for Divorce Mediation. There will be situations where neither of the options above will work, and the Alpha Center Mediators will make sure that you and your assets are protected.By Ann Blasko
Ann is a Mortgage Consultant serving the Philly Suburbs, South Jersey and Delaware. With over 23 years experience in home mortgages, Ann is truly passionate about carefully guiding and educating clients through the entire home loan process and has worked with many of Alpha’s clients to ensure they have a firm financial footing moving forward.
©2017Alpha Center for Divorce Mediation