CodeMark TV Episode 29
Divorce and the Mortgage Process
This time around we’re going to talk about divorce and its relevance to the mortgage process. It’s not the best thing to talk about, but it’s very relevant.
When we get married, we don’t get married under the pretense that we’re going to get divorced. Things happen, such is life. However, when people get divorced, what usually happens is that people want to move on to the next chapter.
If you bought your house when you were married, chances are you’re both on the mortgage. Irrespective of what the court decides about who is awarded the home, that debt still exists on paper. At least one person will be moving out. So, you’re looking at a refinance situation.
Is that a problem?
It is if it’s maybe a spouse, that hasn’t been working, wants to try to afford a home that they don’t have income to support. It’s also a problem for the spouse that wants to go buy something else, and now is carrying over debt. This is the part that most people don’t know and sometimes aren’t even educated on by their attorney.
If you are looking to split ways (hopefully amicably) and both get new houses, you’re going to need to sell the home so that you can split very evenly there. Or, make sure that the person that the house is going to be refinanced under can afford that note. That releases the debt of the person that is leaving so that they can go on to the next chapter and purchase something else.
Anyway, that’s not going to happen to you. We are here if anything happens to you, especially regarding mortgages. That’s what we’re here for, to educate you to understand the processes of all things real estate, and everything mortgage.
Until next time I’m Mark McInerney President/CEO of Codemark Financial. Catch me on Friday on Facebook Live, Lunch with Mark noon, sharp, and then you can catch me here on YouTube anytime you want on Codemark TV. I’ll see you next time.