Thousands of Americans go through divorce every year. Sometimes, getting divorced is the best way for two individuals to move forward with their lives. However, it can also be emotionally and financially draining.
Usually, one party ends up keeping the home and the other moves out. Generally, this means that someone’s name must be removed from the mortgage papers. To do this, many people choose to refinance their homes.
If you are going through a divorce yourself, you may be curious about how this process works. This article will teach you everything you need to know.
The Process of Refinancing Your Home During a Divorce
Here are the steps you’ll need to take to remove your former spouse from the mortgage and the deed to your home.
Step 1: Decide Who Will Keep the Home
If you have not already, you need to have a conversation about who will keep the home. Sometimes, especially if children are involved, one party will stay in the home, and both will continue to pay for the mortgage. However, most of the time, the party who stays living in the home assumes full responsibility for the mortgage. The other party is then removed from the mortgage papers and the deed.
Step 2: Apply for a Refinance Loan
Next, whoever is staying on the mortgage will need to apply for a home loan refinance. Simply contact your lender and tell them that you would like to begin this process. Keep in mind, you will need to be able to prove that you can afford the mortgage on your own.
Step 3: File for a Quitclaim Deed
Just because your spouse has been removed from the mortgage doesn’t mean they are automatically removed from the title. To do this, you will need to obtain something called a quitclaim deed. A quitclaim deed is a legal document that is used to verify that an owner has relinquished or transferred their rights to a property.
Remember, It’s Okay to Ask for Help
Keep in mind, the home refinance process is completely separate from the divorce process. You will still need to comply with the terms of your divorce. In some cases, this could mean paying your former spouse for their share. If you don’t have the cash to do this, you may want to consider taking out a HELOC or home equity loan. If this is the case, we will be happy to walk you through your options.
Getting a divorce can be complicated. If you have questions about the home refinance process, please do not hesitate to reach out. Remember, it’s always okay to ask for help.
Contact Us Today
Mortgage Solutions Financial is here to help with all your home refinancing needs. Contact our office today to speak to an expert.