When a married couple decides to call it a day and file for divorce, one of the greatest decisions to be made is the sale of their home. This can be a complicated procedure, particularly if the couple has a joint mortgage on the property. If this is the case, the mortgage will need to be sorted out, and this will typically be completed by having one of the spouses’ names removed from the document.
When a spouse has their name removed from a mortgage, he or she will benefit from the chance to apply for a new home loan. Furthermore, having his or her name removed from the home mortgage will also break any links that connect the married couple’s credit; thereby, removing any joint-debt that might exist. It is common for the spouse without a job or who earns less to have their name removed from the mortgage.
The spouse whose name is retained on the mortgage has the responsibility to decide what will be done with the property, such as whether he or she will keep or sell the house. Certain points need to be taken into account in this situation, most importantly the individual’s ability to maintain the property on a single person’s income. Deciding what to do with the house depends greatly on whether he or she can afford the property alone.
This is a significant factor to examine, particularly if during the marriage both spouses used an income to maintain the house. The question of whether a single income is sufficient to support the house’s upkeep needs to be answered. If it is not, then it may be a better option to sell the property.
In the majority of cases, divorcing couples choose to simply sell the property and divide the proceeds from the sale as a means of avoiding any hassle or confusion. This is often done regardless of whether or not they could afford to maintain the house. However, if one spouse wishes to own the property but is unsure of the upkeep costs, it is recommended that he or she speak with a mortgage lender. This is the first step to clarifying the financial issues and matters regarding the mortgage; as well as identifying if the spouse who wants the house can maintain the property. Alternative options to keep the property may also be discussed here dependent on how willing the mortgage lender is to accommodate the individual.
Rare cases are seen where the divorcing individuals are not able to reach any agreeable terms; thereby, preventing the mortgage from being broken. This can become a complicated and ugly situation with no mutual grounds being reached. It is important to continue discussing the issue with professionals to find common ground between separating spouses and reach an acceptable agreement regarding the property.
In our years of working in the real estate industry, we at Sell My House Houston Pros have witnessed numerous separations and divorces in all forms along with the real estate issues that come with them. Our experience in dealing with these issues makes us confident that we will effectively handle divorce issues that people throw our way.
The post A Beginner’s Guide To Breaking Up A Mortgage After A Divorce appeared first on Sell My House Houston PROS.