Love fades and marriages end. Yet the mortgage you agreed to pay when you were in love remains your obligation - until you find a way to divorce it.
If you can sell the house, that's the easiest way to put this joint debt behind you. But what if one of you wants to stay? If the other party is willing to walk away from ownership, the one who wants to remain in the family home can simply "buy out" the other's interest in the property.
Oftentimes, this is the spouse with primary custody of the children will often want to keep the home to provide a stable environment and to stay near school and friends. It is important to note that unless you have the cash to buy out your spouse outright, you will need to secure a brand new mortgage; therefore, credit history and capacity to pay will weigh heavily in the decision making.
Refinancing the loan under the name of one spouse can be appropriate under these conditions.
• The couple is not underwater on the mortgage.
• One spouse has sufficient credit and income to qualify for a refinance.
• The other spouse agrees to let go of the house.
But often, the wife or the husband can't afford to keep the house with one income, don't qualify to refinance the loan or both. Can you afford to keep the house? As a rule of thumb, refinancing may be right if you would purchase the home if you were single.
Sonia can help you ask the right questions.
Is the question whether or not you can keep your home after the divorce adding stress to your already demanding situation?
Are you wrestling with the notion of not wanting to move the children to a new environment if you don't have to?
What income and credit items will a bank evaluate, after the divorce, in order to approve your desired home loan?
How does receiving temporary support payments impact your ability to qualify for a new loan?
If your ex-spouse has always handled the financial items in household and you are not quite sure where to turn to determine "can I afford this home on my own?"
Are you agonizing over the decision as to whether or not you should sell your home and downsize or just rent?
These weighty issues are best approached with a mortgage professional like Sonia Alvarado. She works with either one or both spouses to streamline the process and benefit all parties involved.
Working arm and arm with Sonia and her team, you can make the most informed decisions with regard to the marital residence and possibly, a new home to begin a fresh start.