What would happen to your house on Mortgage if you Divorce
Apart from all the mental pressure about your relationship failure separated living cost is another addition to all those fears at the time of divorce. There are many financial aspects associated with your decision to take divorce, so you need to check in with the lawyer about how money-wise your divorce is going to affect you.
At the time of divorce court decision will always give preference to the comfort of kids keeping their age in consideration. One partner can stay in the house until kids are adult. Court will also decide about the divorce settlement along with the payments for maintenance and your house finance.
If both the partners are joint owners of the house and one partner want to keep it after the divorce, court will give one partner a particular share in the house that he or she will get at the time of its sale. Though, it becomes difficult to sell out the house in the recession affected times, you can still look for selling it out at a reasonable price. The price can be paid to the banks and the two parties can divide the profits received if any. Partners have to sometimes stay separately under the same roof until they get the best price.
Other option to look out is that one partner can buy out the house and give the moving out partner half value of the house with a deduction of his share of mortgage to be paid. At this point partners should make it clear that the papers of the house are no more under joint mortgage. Because person who has already paid the mortgage can be made accused of it in future as well, since his name is there on the papers.
In case you plan to sell your house then also you have to think about the consequences like renting out and paying the loan. There is also a program known as Home Affordable Refinance Program (HARP), this program allows a partner to refinance the house even in the adverse situation like the mortgage balance is almost 125% of the value of the house.
One more option advised in such situations is mortgage modification. Under this program the payment of the loan is deducted to a smaller amount to make it more affordable for the partner owning the house. Mortgage Modification Program helps the person in those circumstances where income is less than the expenses.
Some couples also keep the house as joint property even after the divorce and keep their marital home as a rental property. However, whether you want to keep your house together or one person plans to buy out the other it is advised to get it on papers after your divorce.
This article provides some of the tips What Would Happen to Your House on Mortgage if You Divorce I hope you will find something that helps you. For more information, please visit: thedollartimes.com
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