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Broker Number 10349

Divorce: what you need to know about your mortgage.

"I survived my divorce with dignity - but what about my mortgage?  What are my options?"



While a divorce is unpleasant and can be expensive, involving a mortgage agent early on in the process can prove to beneficial.  You need all the help you can get and all the assets you can have.  I will take you through the process, ensuring you ideal options for your particular situation.  Most importantly, I will give you the gift of time by taking care of the entire process from start to finish.



Unfortunately, this is a common question in our times but fortunately, there are answers.  There are two real options for a divorcing couple with a family home.



1.  Sell it then Split it:  This is a straight forward solution where the divorcing couple sells the home and splits the profits.  However, there are some things to consider when taking this route.  One, you may not get the price your looking for given that you are under some time constraints.  Second, sharing the profits means you also share the legal, Realtor  and moving expenses.  Taking all of this into consideration, couples can be disappointed how little profits they are able to leave with.



2.  Buy them out:  In this case, either spouse decides to stay in the home and buy out the former spouse's share.  After an agreed upon market value is determined (either through a trusted real estate agent or approved appraiser), the "net equity" in the home is determined by subtracting any outstanding debts against the property along with any disposition costs (legal and Realtor fees) from the market value of the home.  The net equity is then split between the couple.  In this case, the spouse that purchases the property has to be able to afford the required mortgage and qualify with a lender under a single income.



I do stress that no lender will provide you with a mortgage unless a separation/divorce agreement is in place.  Leaning on the side of caution, they want to ensure they understand your future financial obligations before committing.