If you’re going through a divorce and you and your ex-spouse are joint homeowners, you may not need to sell your home in order to release your ex from the mortgage contract obligations. If your mortgage contract lists both your names, your mortgage lender has the legal right to obtain payments from both of you. You have several options for getting your ex off your mortgage contract, but the easiest one is usually to sell your home.
Buy Out Your Spouse: If you want to stay in the home and can afford the full mortgage payment on your own, you may be able to buy out your ex-spouse by taking out a second mortgage for half the remaining amount owed on the first mortgage, paying this amount to your ex, and then consolidating your first and second mortgages into one payment. If you’re receiving child support and/or alimony, these payments count as part of your income and can help you qualify for a loan more easily.
Maintain Joint Ownership: If you are on good terms with your ex and neither of you can afford to buy the other out, it may be in your best interest to continue to own and pay for the house together while only one of you lives there, or you can rent it out and split the profits.
Sell Your Home: When you sell your home, both you and your ex are released from the mortgage contract. The money from the sale is used to pay off the remaining mortgage balance and, depending on the terms of your divorce settlement, you will probably split the remaining profits. If you need to sell your home quickly in order to begin renting or pursuing the purchase of a new home, a homebuying company can buy the home and pay off your mortgage balance in less than a week.
If you’ve divorced while in joint ownership of a home, what did you do?
Are you ready to sell a home fast? Call us today at 1-(877) 804-5252 or have your client contact us to get an offer in hours from Express Homebuyers.