Divorce Can Make Refinancing Your House Difficult

I saw a recent Washington Post real estate column about a stay at home mom trying to refinance her house.  It made me think of all the problems people must be having trying to save the house they negotiated for or were awarded, in a divorce case.  A typical Separation Agreement may provide that the spouse who is supposed to get the house has 3 to 5 years to refinance the house into their name alone, or the house has to be listed for sale.

If you were divorced in the last five years, are in this situation, and now are looking to refinance, you may be facing a number of problems.  The first thing you should do is step back and try and think about if it makes sense to try and keep the house.  What would I be willing to pay for this house now?  Would I buy this size house now? Am I going to stay in this house long enough that I will be able to sell it for a profit?  Can I afford the mortgage?  What are my rental options and what would they cost?

If you decide you should try and refinance you then have the problem of getting the loan.  You may need to shop around.  The Washington Post article suggests you find a couple of reputable mortgage lenders (national and local), at least one mortgage broker, and one credit union (if you belong to one), and talk to each of them about your circumstances.  If you are not able to refinance because you don’t have the income, credit score or equity to do so you may need to consider other options.  Please see our article about Saving Your Home in a Financial Crisis on our Free Legal Advice site.  Or, go ahead and contact us for a consultation.

About Southern Maryland Law

 

Andrews, Bongar, Gormley & Clagett is one of the oldest and largest law firms in Southern Maryland. We have been serving clients here for over 50 years. We have more attorneys and a larger staff than most other local law firms, so we can handle a wider variety of legal matters. Each attorney concentrates his or her practice in a few key areas, so you can be assured of the expertise you need.

 

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