What Happens to a Mortgage in a Divorce?
Figuring out what to do with your home during a divorce is not an easy decision. Not to mention, this probably comes at a time when you and your ex are emotionally exhausted and have no desire to deal with your Nevada property. But, it’s something that has to be done. As long as both names are on the mortgage, the lender will hold you both responsible for the payments.
Let’s explore the options you have with your mortgage when divorcing so that you can determine the best solution for your circumstances.
Refinance the Mortgage
Refinancing is one of the easiest ways to deal with a mortgage during a divorce. This process allows you to take off one of the name’s on the mortgage so that this person is no longer responsible for the payments. You can even consider a cash-out refinance that allows the departing person to get a portion of the equity.
However, there are certain things that can stop you from refinancing. You’re essentially taking out a new loan, which means whoever is keeping the home has to have enough income to make the payments, a good credit score and some equity.
Buy Out the Spouse
Another option that will help you solve a mortgage dispute is by paying off the person who isn’t keeping the home. Essentially, the equity you have in the home can be split and the person who wants to keep the home can “buy out” the other person.
Of course, this works well when there’s equity in the home. Not all Nevada properties have this. If you don’t have equity to work with, you may have to consider a personal loan instead. Personal loans don’t depend on your home, but they do take into consideration credit score and income.
Sell the Home
Sometimes, selling the home is the best solution for both parties in a divorce. You and your ex will make this decision together and then split the profits when the house sells. However, it can take a long time to sell a home in Nevada, especially if it needs repairs and updates.
If you don’t have time to waste, and both you and your ex want the house sold, a better option may be to sell your house for cash in Las Vegas. This way, you can close in about one week and split the cash profit. These sales are considered as-is, meaning that no repairs are necessary.
Keep the Home
Finally, you can keep the home and keep both names on the loan. If you and your ex have come to an agreement, make sure you get everything in writing. It’s possible that you may live in the home with your children while your ex agrees to make the payments, or vice versa.
Divorce is complicated, but don’t let that stop you from doing what you need to. Having good credit is important for owning or renting a house in the future. To get a free, all-cash offer from our Las Vegas home buyers, contact We Buy Any Vegas House today.