Of the many pain points that revolve around divorce is a joint mortgage. When going through a divorce, it’s natural that several questions surface concerning a joint mortgage. Going through a divorce has a huge impact on your finances which is why it is important to keep your mortgage lender informed about the happenings of your personal life right away.
Despite having separated, it is vital to keep repaying the mortgage on time even if you haven’t yet decided what to do. A joint mortgage means that you as well as your partner are liable for the mortgage until it is completely paid off- irrespective of whether you still live in the property. Depending on the conditions of your agreement, your lender could even agree to give you a temporary break from having to make mortgage repayments.
There are several options available when it comes to a mortgage after divorce such as the following:
1. Buy-out your partner
You can choose to buy your partner out of the mortgage. If you need to borrow money for the same, you must be able to prove to your lender that you will be able to afford the mortgage repayment on your own.
2. Sell the home
The simplest and most viable option is to sell your home, pay off what is left of the mortgage and split the rest of the money. If the outstanding mortgage exceeds the value of your home, you would have to divide the outstanding debt between you and your partner. In such a scenario it helps to consult your lender to understand your options.
3. Pay off the mortgage
If you’ve almost paid off your mortgage and you come to an agreement with your partner, you can continue to pay the mortgage until it’s completely paid off. This will enable you to sell your home and split the entire proceedings later on.
4. Find a guarantor
Applying for a guarantor mortgage comes into play when one person wants to take over the entire mortgage but can’t afford to do so. The procedure involves having someone like a family member to cover the repayment costs if you are unable to do so yourself.
5. Retain a stake in the property
Another option is to transfer a part of the home’s value so that one person would own most of the property but the other would retain a stake in the home. This means that they would be entitled to a percentage of the value of the home is sold.
Mortgages tend to become complicated during a divorce, so if you’re worried, it would be a good idea to seek help from a financial or legal advisor. One such option is to consult Blakemortgage for any queries or qualms about divorce and mortgage.
Missing or falling back on payments affects your credit report as well as your partner’s. You will be financially linked for as long as your names are on the mortgage. It is best to consult your lender as if you think you might miss mortgage payments.
Please visit here for more details: https://blakemortgage.com/home-refinance-loan