Divorce is often a difficult and stressful process, particularly when there are assets to divide up, including a home. Many couples do not know how to handle the home and a mortgage during a divorce, which can cause several problems for both parties.
During the divorce process, couples must divide their joint assets and come to an amicable solution. These options are determined by a variety of variables, including but not limited to: how their property was financed and titled, the amount of equity they have in the home, whether one person wishes to remain in the house, income and their credit rating.
What are your options?
To sell the house or refinance.
The easiest option is selling the house. The couple can sell their property, pay off the mortgage, and split the remaining proceeds (if any). However, couples should also think about the costs of selling their home, in addition to the mortgage balance. Realtor commissions, costs of tidying up the house to make it more appealing to buyers, real property transfer taxes, and capital gains taxes are just some of the expenses.
Most times, one spouse would like to keep the home. This option is buying out the other spouse. Usually, this involves one spouse qualifying and being approved for a mortgage. The banks usually provide options based on income and credit. Unfortunately, if the spouse is unable to qualify, they can not buy out the other spouse.
But there is another solution.
It can be very hard to overcome all the obstacles that comes with a divorce. This is why Freedom Capital is here to help you. With equity, we can approve the new mortgage and obtain enough funds to pay out your spouse.
Freedom Capital can provide you with a variety of financial solutions regardless of your troubles. Let us be your financial lifeline, because when the banks say no, we provide you with the financing solutions you need. We are specialists in the alternative, private and commercial mortgage market.