To figure out what to do with a house that has a mortgage on it after divorce feels difficult. Too, this is a question that comes up when your life is most likely in turmoil. Equally important, the last thing you want to do is deal with a mortgage. So, what happens after divorce in Pensacola?

When it comes to the mortgage, you have to decide how to divide the home's equity. It means you need to decide whether the home is sold or not. Further, there may also be liability regarding the home.

What Are the Responsibilities for the Mortgage After Divorce?

Responsibility for the mortgage after divorce is not something that most people deal with on a regular basis. Therefore, it is understandable why so many questions arise about it. 

One of the common questions is whether the house has to go through a sale. This is so the equity can divide equally. There is an alternative to this, where one party can buy out the other. Further, the spouse that buys the home assumes the mortgage. This so they can pay the other spouse their share of the equity. When you deal with the mortgage after divorce, you need to decide who takes responsibility to make mortgage payments.

Who Will Pay the Mortgage?

If the mortgage is joint, legally both spouses are equally responsible to pay. If you do not pay the mortgage, the lender can come after both parties. 

During the divorce agreement, you need to legally determine who assumes the mortgage payment responsibility. There are times when an agreement is made between a couple to just transfer the title to the other partner. This is done with a quit claim deed. 

This means the party that signs over their ownership no longer has any claims to the property. That does not mean that the spouse that gives up their rights to the property is no longer responsible for the mortgage after divorce. 

To prevent this, there must be transfer of liability. This can be done by the spouse who takes ownership by mortgage assumption or loan modification after divorce. In most cases, the better route is to assume the mortgage. This then means responsibility to pay the mortgage moves over to the spouse who keeps the house.

What If the Value of the Home Is Lower Than the Mortgage?

Not every couple that go through a divorce make a profit from the sale of the home. The sale may not necessarily clear the mortgage. Sometimes the value of the home is lower than the mortgage. 

If the buyout partner fails to qualify for a loan modification, and comes up with another way to buy the house, it creates a difficult situation. You may arrange to put off the buyout or sale of the house. That means the two spouses need to make an agreement.

If you want to sell your Pensacola house after divorce, Blackjack Real Estate gives you a cash offer in as soon as 24 hours! You don't have to worry what happens after divorce any longer. To get your cash offer, or to get answers to any questions you have, call us at 850-601-4714. There is no obligation from contacting us!