Mortgage and Divorce
Mortgage and Divorce
SellingRefinance
Mortgage and Divorce
Author
NextDoor LendingNextDoor Lending
Read Time
5 Mins
Date Published
May 9, 2022

Divorce can be a messy ordeal, and it's one of the most stressful events that people go through. If you're in the midst of divorce proceedings with a mortgage involved, here are some helpful options.

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Value Your Home for Equity

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Home equity is the appraised value of a home minus any outstanding mortgage. If you are considering selling your house, it's best to get an appraisal from a professional first so that both parties know how much money they'll be splitting up or if one will owe more debts than what their share would cover.

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Removal from the Mortgage

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Leaving your name on a mortgage for a home you no longer live in can negatively impact your credit and debt-to-income ratio. This is because if the bank forecloses, it will negatively affect those numbers in addition to bringing up past debts that are now long gone.\nTo remove your name, you'll need a lender to help. But not all lenders are the same! If you're looking for someone with experience handling different scenarios and making sure they can offer choices based on what is best for YOU (like income, credit score or equity), then talk to us today about refinancing.

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Selling the Home

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If neither spouse can qualify for the mortgage independently, or no one wants to retain ownership of the home, the property may need to be sold. Selling costs are not insignificant and come with various fees such as real estate agent commissions and repairs. An amicable divorce agreement, written in which each spouse will split any proceeds from sale after paying off the mortgage provides closure for many couples.\nDivorce is a difficult process but there are options for navigating this transition. A divorce attorney, a financial advisor, and a trusted mortgage broker like us at Next Door Lending are here to help guide you.

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