Selling House after a Divorce in Thornton
Love fades away and couples that have been married for years end up separating, however, you cannot divorce your mortgage.
In the eyes of the lender, you are still married and thus the responsibility of paying the mortgage is still yours, at least until you find a way of divorcing it completely either through selling a house after divorce in Thornton or coming up with the money to clear the mortgage.
Couples who want to divorce have some of the hardest moments in their lives. Even the real estate market has slowly picked up itself following its crash, it’s still not easy for divorcing couples to sell their house, split the proceeds and buy new homes for themselves. Things and time have changed because people no longer divide assets alone, but they also divide liabilities – and the biggest liability a divorcing couple can have is the mortgage.
As noted, the only way you can divorce your mortgage is by paying it. So, unless you refinance or sell the house after the divorce, the lender will still come for the two of you. If you cannot sell or refinance the house, there are some options for you as well. You can opt to go the traditional way or seek an alternative path towards solving your mortgage issues after a divorce. Regardless of the path you take, the affected couples need to keep their cool by shoving aside their emotions and focus on the financial matters at hand.
Selling a house after divorce in Thornton
Selling a house after divorce in Thornton is the easiest way to put the joint debt you owe your mortgage lender behind you. Since the house was initially meant for the two of you yet you are no longer the two of you, the ideal thing would be to sell it, pay off what you still owe on the mortgage and use the remaining amount to move on to the next that life throws in your path.
If you owe more on your mortgage than the current value of the house, things could get a bit tougher. Still, you won’t be short of options. You can either choose to pay off the difference or go for a short sale. Whichever works for you! However, note that the short sale will leave a black mark on your credit score and the homeowners might still be responsible for the difference between what the house actually sells for and what you owe on the mortgage. If you are lucky, your lender might decide to release both borrowers from the liability during the short sale.
Refinancing the house under one spouse
If one of you feels that selling house after divorce is not a good idea and would instead like to keep it, the loan can be refinanced under their name. However, the couple should not be underwater on the mortgage, the spouse in question should have enough sufficient credit and income in order to qualify for a refinance and the other spouse must also agree to let go of the house.
However, in most cases, none of the spouses is able to afford to meet the expenses of keeping the house or they don’t qualify for a refinance. In such cases, we go back to selling house after divorce Thornton as the ideal option.
If one spouse is pretty much determined to keep the house but is not willing to spend money on refinancing the house, a loan assumption could be another valid option. Although quite rare these days, trying it won’t hurt at all. Depending on your loan, a lender may allow one spouse to assume the mortgage of the house, but still, the spouse in question must prove that they have sufficient income to make the monthly mortgage payments for the house.
In the divorce settlement and decree, it should be clear that one spouse will now be in charge of making the mortgage payments. If you don’t, any future application for another mortgage might be rejected since the pending mortgage will continue to reflect on your credit report.
To avoid any such risky instances, the ideal solution is selling a house after divorce in Thornton for cash. Call Denver Property Flip on (720) 370-9595 and we’ll make you an all-cash offer within 24 hours of inspecting the house.