A Guide to Divorce and Mortgage Rights: What Happens to Your Home?

1
A Guide to Divorce and Mortgage Rights
What Happens to Your Home?
2
What happens to a house in divorce?

• A divorce requires you and your soon-to-be
  ex-spouse to divvy up your joint property and
  assets. For many couples, your house is the
  biggest asset you have, and often both parties
  are on the mortgage.

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The Ideal ScenarioSell or Refinance

• Selling the property is the cleanest way to
  divide it. Once sold, you use the proceeds to pay
  off the mortgage and split any leftover profit
  (after capital gains taxes). 
• A refinance also works well when available. The
  partner who prefers to keep the house can the
  refinance the mortgage in their name only and
  therefore become responsible for making the
  payments.

4
What If We Cant or Dont Want to Give Up the
Property?

• In some cases, the house is challenging to sell
  and the party who prefers to keep it cant
  qualify for a refinance. Other times, neither
  spouse wants to get rid of the house because they
  have young children and want to keep them in the
  home.

In these cases, you can sell a house fast
longmont to work in your divorce decree.
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What to Do If You Cant Refinance or Sell

• If all of your traditional options are
  unavailable and you cant find a way to get rid
  of the house, there is still hope.
• Many couples end up taking one of these options
  when they cant refinance their existing loan or
  re-sell.

6
Home Equity Loans and Personal Loans

• Many courts split the equity in the home between
  the two partners. The spouse who wants to keep
  the home must raise the cash to house buyers
  longmont,co. In these cases, a home equity
  loan can help you get the cash you need (as long
  as you have equity).
• A personal loan has strict requirements but wont
  require your house as collateral.

7
Freddie Mac Enhanced Relief Refinance

• If you purchased the house after October 1, 2017,
  with a Freddie Mac loan and made at least 15
  months of payments, you may qualify for the
  Freddie Mac Enhanced Relief Refinance (FMERR).
• The FMERR allows you to refinance and remove your
  spouse from the loan. You need at least a 620
  credit score to apply, and it doesnt let you
  take cash out.

8
VA and FHA Refinances

• If you have a VA loan, you can refinance to
  another VA loan if its in the veterans name. If
  a non-veteran keeps the house, they need to find
  a new loan.
• FHA loans allow you to refinance. However, if you
  intend to keep the house, you need to prove that
  you are the only one who has made the mortgage
  payments for at least six months. 

9
Sell Your House for Cash

• A fourth alternative is to skip the conventional
  real estate market and all the requirements of
  various refinancing programs and sell a house
  fast longmont.

If you both agree, you can close in as a little
as seven days. Your house problem is no longer
standing in the way of finalizing your divorce.
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