Divorcing? What will happen to my mortgage?
Living in Palm Springs, Cathedral City, Rancho Mirage, Indian Wells, La Quinta or Indio?
Here are points of interest to consider
Divorce can be a messy and emotional situation, and it can wreck all of your finances. One of the major assets that couples share is their home mortgage and it is imperative that adequate time, by both spouses, needs to be spent making decisions regarding the mortgage.
Selling your home is Often the Best Option
Your best option and maybe the most logical is to sell your home. This is easiest done if you have equity in the house, and the house could be sold and the profit can be split. Emotionally, selling will not be easy, especially if you raised your children in the home. From a financial and logical standpoint, selling the home and splitting the profit is the cleanest way to deal with the mortgage.
Deciding if one spouse can take over the house payments
If one spouse decides to keep them home, then they need to finance the property under their own name. In order to do this, they need to show proof that they have enough income to pay it off.
It’s not wise and recommended not to trust your ex-spouse will make the mortgage payments. Even if you’re not on the deed, as far as the mortgage company is concerned, you and your ex-spouse are both fully liable for the mortgage costs each month. This might prevent you from getting a place to rent since many landlords want to be sure you have enough income to pay for the rental.
Helping you sign up for a Quitclaim Deed.
This is a legal way in which you can transfer the real property over to your ex-spouse. It is called a Quitclaim Deed. By signing this deed, it means that the person signing is losing their claim and right to the home. Signing the Quitclaim deed in a divorce, gives the other party the entire rights to the property, but your name will remain on the mortgage and you will still be liable. Even if it is not your home, you will still be held accountable for any missed mortgage payments and your credit score could be seriously affected. Remember that a deed and a mortgage are two completely different legal instruments and that by signing a quitclaim deed you are not absolved of responsibility for the mortgage.
Understand that if you sign a quitclaim deed, you are giving up the right to sell and profit from your home sale. For example, say you sign the deed because your ex-wants to pay the mortgage, but cannot afford to refinance. Now that your name is off the deed of the home, your ex can sell or refinance the house anytime and will not owe you anything. You will be left empty-handed.
Luxury Desert Homes have the perfect real estate representatives for homeowners desiring to sell their home due to a divorce. Our professional real estate agents are committed to achieving the goals of time and price, with our experience as attorneys handling distressed sales provides an immense advantage over other real estate professionals.
Luxury Desert Homes are the best choice to handle a divorce sale no matter where a homeowner lives in Riverside County, Orange County or San Diego County.
Go to www.luxurydeserthomes.com/divorcevip to get your FREE report on the 5 steps to selling a home during a divorce.
If you are contemplating a divorce or currently going through a divorce and a home is involved, mediation should be a choice you should not overlook.
As a trained mediator, I will be more than happy to assist, especially as it relates to the 50 most important decisions that need to be considered and made by both parties.
These include children, income taxes. College, medical insurance, life insurance, support and personal property to name just a few.
So, if you think you need my help, please click here and we can get this trying time to the shortest resolution possible.
For questions about the selling process of your Palm Springs home, please call Luxury Desert Homes at (760) 574-7676. With many years of experience in handling divorce related real estate sales, our team will help you every step of the way. There is no need for you to do this alone.
NOTE: These items are free to clients who list or buy a home through Luxury Desert Homes.
The content available herein is provided for informational and educational purposes only and should not be relied upon as an investment recommendation or legal advice. The publisher makes no representations or warranties as to the accuracy, completeness or timeliness of the information. The information is not intended to provide legal, tax or accounting advice. Use of any information, materials, and opinions given or discussed is at the User's own risk. You as the reader are encouraged to discuss this information with a lawyer experienced in the disposal of real estate.
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