Navigating the Challenges of Divorce and Your Mortgage
Going through a divorce can be a difficult and emotional process, and one of the major concerns for many couples is what will happen with their home and mortgage. If you are currently facing a divorce and are worried about how it will affect your mortgage, Mortgage Suite is here to help.
When it comes to divorce and mortgages, there are a few key things to keep in mind.
One of the most important is that both parties are still responsible for the mortgage even if one party moves out of the home. This means that if your spouse moves out but you continue to make the mortgage payments, your credit score will not be affected. However, if your spouse stops making payments, both of your credit scores will suffer.
Another important thing to consider is that the home and mortgage are often considered marital assets, which means that they will be divided in the divorce settlement. This can be done in a variety of ways, such as one party buying out the other’s share of the home or the home is sold and the proceeds being split between the parties.
Mortgage Suite can help you navigate the challenges of a divorce and a mortgage. Our team of licensed mortgage professionals can work with you to find the best solution for your unique situation. We can help you understand your options, including refinancing the mortgage, selling the home, or modifying the terms of the loan. We can also help you understand the impact of divorce on your credit score and how to protect it during this difficult time.
Generally speaking, there are 3 mortgage solutions to a divorce:
- Sell the joint-owned property and buy another
- Refinance yourself off title with your equity, and buy another home
- Obtain financing and refinance ex-spouse off the property
The following questions above are just an example of what a broker will ask when it comes to your mortgage approval in a divorce situation.
- Do I have a division of assets that needs to be done?
- Do I have a separation agreement in place?
Don’t let the stress of a divorce and a mortgage add to the already challenging process. Contact Mortgage Suite today to learn more about how we can help. With our expert guidance and support, you can feel confident that you are making the best decisions for your financial future.
