It’s a scenario that is all too common, and yet often misunderstood. A married couple buys a house together and works hard over time to make it feel like a home. But what happens to all that hard work and money that has been invested when faced with a divorce? Here are some helpful tips that may help you understand how to manage the situation in the most efficient way possible and avoid some common pitfalls:
1. Did you know that until the property is refinanced into the name of the person keeping the property that the mortgage liability remains on both borrowers’ credit report?
2. While a Divorce Decree may state who is responsible for the current mortgage liability, if the responsible person stops making the mortgage payments all together or doesn’t make the payments on time, it can affect the credit score and credit history of both individuals who signed the original mortgage Note. Don’t let your credit be ruined because your ex-spouse has stopped paying the mortgage payments on a home you don’t even live in anymore.
3. Signing a quit claim deed only eliminates your rights of ownership to the property, it does NOT eliminate your responsibility and liability for the mortgage payment if your name is still on the loan.
Give me a call for answers to this or other mortgage questions!
This post was shared from Axia Home Loans company blog. I hope you enjoyed it!