That’s one of the first questions you’ll encounter when considering separation. In many cases, both spouses have signed up for the house as well as the mortgage. You both are still liable for paying the bank irrespective of the personal matters.
Credit score and income are often the reasons people make a joint purchase. Two income sources are more attractive than one, and combined; you can get approved quickly for better mortgage rates. However, when going through a divorce, you lose these perks. The complexity varies from case to case as child custody is also a factor that affects the ownership of the property.
There are three common scenarios regarding your property during a divorce:
As one of these situations is finalized, one of you will have to leave the house. Carefully study the mortgage documents. If you want to keep the house, you’ll need to refinance the property. Get a new mortgage and own the property. In case you don’t want the house, you’ll need to ensure that your name is removed from mortgage documents. It is easier said than done because banks are not willing to cooperate.
Signing the “quitclaim deed” removes your name from property ownership. You’re no longer the owner of the said house. Does it remove your name from mortgage documents?
Not certainly. You may still be responsible for mortgage payments. If, for some reason, your ex can’t keep up with mortgage payments or doesn’t do that intentionally, the bank can come after you. When a jointly owned house is foreclosed, both parties will suffer. One solution is to contact the court that issued the previous order. You’ll need to bring another order that shows you’re not the owner of the house, and the bank can’t demand money from you. In other cases, the best strategy is to refinance the mortgage. Your ex may not be willing to refinance the property. Refinancing can be a challenge, because now you’re applying based on a single income source.
Property issues and family matters are complicated. In most cases, the best solution is to sell the house, divide the proceeds, and move your life in a new direction. Heritage Home Solutions can help you navigate through this complicated situation. You can save yourself the trouble and sell your house as-is for a cash price. You don’t pay any commissions or closing costs when you sell your house to a cash buyer such as Heritage Home Solutions.
If you don’t want to deal with divorce attorneys regarding real estate matters, you can contact us for a free consultation. Our team will guide you on the best possible options available to you.