How Can I Keep My House in a Divorce

Are you getting divorced and want to keep the family home? If so, you are in good company. Lots of people want to avoid the disruption of a move…especially in the middle of a divorce.

How can you keep your house in your divorce? Here are the three primary methods divorcing couples use to accomplish that goal:

ASSUMPTION OR RELEASE OF LIABILITY
(a) One spouse’s name is simply removed from the mortgage loan
(b) You keep your old interest rate
(c) Rare, but getting a little bit easier to acquire. (I have only started seeing release of liabilities beginning mid-2022.)
(d) Must be done after divorce (assumption)
(e) High fees

REFINANCE
(a) A brand new mortgage in just one spouse’s name
(b) Must pay current interest rate
(c) A job is usually necessary
(d) Spousal/child support counts as income; must show 6 months of payments
(d) High fees

MAINTAIN SAME MORTGAGE
(a) Affects debt-to-income ratio of spouse who moves out
(b) Spouse who moves out remains liable on the mortgage loan
(c) Interest rate stays steady and no fees
(d) Will need tight parameters of time to refinance. Will also need consequences for non-payment of mortgage (such as an immediate sale of house)

Remember, it’s essential to work with a divorce mediator or lawyer, in addition to a mortgage lender, to find the best path forward for your unique situation.

Helpful Blogs:
https://www.grainemediation.com/2021/...
https://www.grainemediation.com/2021/...
https://www.grainemediation.com/2020/...

Facebook: Graine Mediation   / grainemediation  
Twitter: @Grainemediation   / grainemediation  
Linkedin: Graine Mediation   / graine-mediation  
Instagram: @grainemediation   / grainemediation