Getting a divorce is not only painful, but it can get messy, too. It is even more complicated when you have a mortgage in Odessa.
There are several options for how to handle your mortgage and any real estate assets you share with your soon-to-be-ex, so it’s best if you both know your options — selling or refinancing your home.
Deciding which path is right for your situation may be difficult, but with a little research, planning, and discussion, you can choose the best solution for your mortgage. Keep reading to learn more about finding the best solution for the mortgage on your home in Odessa.
Do You Want To Sell or Stay in the House?
If one of you wants to keep your home, getting the other spouse’s agreement may not be easy if you are both at each other’s throats. If no one gives in to another, then your best option may be to sell.
But if one spouse allows the other to stay in your Odessa home, then both of you should ensure that he or she can afford to continue the mortgage payments.
You must also consider the long-term effect of choosing to stay in the house. Make sure it coincides with your plans and goals.
What Should You Do If One Spouse Wants To Stay in Your Odessa House?
1. Refinance It
When both of you agree that one spouse can stay in the home, you can refinance it. That way, only the one staying in the house will be the sole payor of the mortgage loan while the other is freed from such liability.
When this happens, you should also update the title of your house. It should bear one owner only. This may require a quitclaim deed to remove your spouse’s name from the title.
2. Remove One Spouse’s Name
In this process, the mortgage lender is the only one who can remove your ex’s name from the loan contract. Unless you are the only one in the mortgage loan, then a quitclaim deed is executed.
Because a name on the mortgage binds the latter of paying the mortgage, a quitclaim is necessary.
3. Protect Your Credit Score
One of the many reasons you should remove your ex’s name from the mortgage contract is to protect your credit. No matter how amicable you are when divorcing, it is still best to completely divide your debt responsibilities.
That way, if the ex that is responsible for the mortgage can no longer pay it, the other party won’t be affected. Failing to remove the other person’s name can negatively impact both parties if the person responsible runs into trouble.
The best way to do this is to close all your joint accounts and reopen them as individual accounts based on who is responsible moving forward.
If You Decide To Sell, What Should You Do?
Selling your home is the best option when no one wants to stay in the house, or you can’t agree on who should stay.
Selling also may be your only option if neither of you can afford to take on the loan as an individual. In addition to the mortgage, the spouse who stays will also likely need to pay out the other spouse’s share of the equity, meaning an even bigger loan than the current mortgage.
Thousand Hills Properties will buy your Odessa home for cash in as quick as 7-10 days. We are professional home buyers in Texas who specialize in helping divorced couples sell their homes fast. Start by requesting a cash offer online or call us at (432) 237-3449.
The distribution of profits from the sale will be determined in your divorce settlement. Many choose this route when getting divorced because each person can walk away with some money in the bank.
Make Divorce and Mortgage Easier
If divorce is unavoidable, do not make it more complicated by disputing your mortgage loan. You can let one person stay in the house, but take the necessary steps to protect the person who doesn’t stay. If you sell instead, make sure to clearly define how the profits will be divided.
Figuring out what to do with your mortgage in Odessa can be challenging when you’re going through a divorce. With a little research and planning, you can find the solution that works best for you.