Mortgage Options for Divesting Real Estate Assets after a Divorce

So the decision has been made and divorce proceedings have been started.  For many couples who go thru this chapter in their life are really not sure where they stand in terms of being able to keep the home.  Some couples just want to sell and move on and others want to stay due to the children, school districts and other sentimental reasons.  In the current state of the real estate market selling might not always be your best option.  Actually it might set you back worse than refinancing and splitting the home equity position.  This is when someone like myself can come to the rescue and help work out a plan to help both parties in distress. 

I have worked with many clients over the years who have had to make this hard decision and knowing where you stand financially can make the situation easier to conclude. 

Here are some questions to ask before putting the home up for sale.

1.  Could I qualify for the mortgage on my own?

  Most couples think that they need the other spouses income to qualify and sometimes this is just not the case.  Let the mortgage lender make this determination for you.

2.  Is this the right market to sell in?

Right now might not considering the costs to pay a realtor, moving costs, etc.  A lot of times the costs to refinance might be a cheaper option.

3.  Do my children want to move?

Moving is hard on everyone especially children.  If your children are in a school district and has friends moving them away from that environment might not be smart.  Talk to your children and ask for their guidance as well.

4.  Are there any tax benefits for moving or staying?

You will want to talk with your CPA and know this before packing the boxes.

5.  Will my departing partner cooperate with me on this decision?

Divorces can be tough, but it’s very important to get the other spouse on board with this decision.  An uncooperative spouse might not allow a refinance to happen.  Get this worked out upfront.

 

By asking these questions, you will know really quickly what the best decision is for your unique situation. 

We are unique people out there.  We expect better then “would you like fries with that drink”.  I just have learned to use my Midwest values and transfer them into my mortgage business.  If you are looking for something a little more unique in your next mortgage loan, please do not hesitate to get a hold of me. 

My name is Gary Miljour and this is what I do best.