Divorce and Separation Mortgage
If you choose this route, be aware of the costs that may be associated with it. Legal fees and a potential discharge fee from your lender. In addition, it is incumbent upon the partner keeping the home to prove they can manage the mortgage payments. This requires:
- An up-to-date record of mortgage payments;
- A sound credit history and a positive credit score;
- Solid income – if you will be receiving alimony and/or child support, this can boost your income; the Wilson team can help you assess your finances as a lender will; and
- Agreement between the spouses that one will sell to the other
Every lender is different on how they will utilize and calculate support, child tax credits and alimony. So its important to work with an experienced mortgage broker who knows which lender will work with your situation. Once you decide on this option and pursue it, get written confirmation that your name is no longer on both the mortgage AND the title. This is to ensure that you are no longer legally liable for payments.
There is no doubt that a separation or divorce is one of the hardest steps you’ll ever take. It’s sad, hurtful and emotionally charged. During such a stressful time, it’s important that you have the support of professionals you can trust. The Wilson team is here to give you honest, useful information and advice on Divorce and Separation Mortgage solutions.