quick contact
Get in touch
Going through a divorce can be extremely difficult. As a Certified Divorce Lender I see the challenges both parties go through regarding divorce and their home mortgage.
1. Deciding What Happens to the House
The emotional and financial ties to a home can make it difficult to decide whether to sell, refinance, or keep it.It can be hard if one party wants to stay for stability, especially if children are involved, while the other may feel pressure to sell for financial relief.
2. Removing One Spouse from the Mortgage
A mortgage is a binding contract with the lender, and removing a someone from the loan is not automatic in a divorce.That can be difficult as the loan must be refinanced and The remaining spouse must qualify based solely on their income, credit score, and debt-to-income (DTI) ratio, which may not always be possible.
3. Dividing Home Equity Fairly
Determining the fair market value of the home and agreeing on how to divide equity can lead to disputes.With fluctuations in housing markets and disagreements about valuations or buyouts can complicate negotiations.
4. Ensuring Mortgage Payments are ON TIME
Joint mortgages require cooperation until the loan is refinanced, sold, or paid off.If one spouse fails to pay their share or intentionally stops paying, both parties' credit scores and financial health can suffer.
5. Handling Legal and Tax Implications
The legal and tax ramifications of selling, refinancing, or transferring the home are complex and often misunderstood. Capital gains taxes, tax deductibility of mortgage interest, and legal costs can create unexpected financial burdens, especially if decisions are rushed without proper advice.
If you or anyone that you know are going through a mortgage make sure that you get advice from someone you can trust. Having a mortgage lender who knows the ins and out of the process can help your legal team make the best decisions for your and your family.
This is Rob the Mortgage Coach I am always here to create the game plan for you.
