Divorce and Mortgage
When it comes to the divorce you have every right to think about the mortgage. If you don’t think that you’d be able to pay the mortgage of the home, then you should not go for the house. If you want out of the mortgage you may have some trouble. When it comes to the house every state has a different law that pertains to community property. In fact, some states are known as non community property states, where they believe that someone always owns everything; it’s just a matter of determining who.
When it comes to the lenders, they aren’t going to be happy having to redo the mortgage of your home. However, even if you are in the middle of the divorce, the mortgage payment still needs to be paid. In fact, it is up to the creditor to allow you to get off the mortgage or keep you on. If either spouse cannot get the loan by themselves, then you are more than likely going to have to make sure that the mortgage is paid regardless if you life there are not. This can really mess up someone’s credit.
Discuss Mortgage with Your Future Ex-Spouse
If you want to get out of the divorce without the mortgage, you are going to have to think about a few things. You are going to either ask your spouse to buy it out, or you will have to ask them to sell. Depending on the state and your circumstances, you may have to sell the house regardless. If the other person cannot find a co-signer then they will be forced to give up the home. This is one of the easiest ways to get out of a mortgage, however, the laws vary from states and you may have difficulty splitting the assets 50-50. Remember, if you place your house up for sale, you still have to pay the mortgage until the day it is signed over to a new couple or person. This is because you are still the legal owner of the home and the motgage still has to be paid.
Worried About Your Credit Rating?
If you are worried about your credit rating you will have to do some investigation work. You will need to know what credit cards that you both have and the balances on each. Not only do you have to worry about the liabilities that you both have racked up during the marriage, you have to think about all the money that you have saved on account. You may end up having to repay your spouse from the account and pay for your credit debt.
Close all Joint Accounts
When you file for divorce you will want to close all joint accounts. Make sure that everyone knows that it was by request, not because of other circumstances. You will want them to note that so that it shows up on your credit report appropriately and has nothing to do with your credit being bad, when you go and apply for credit.
Some people will run up the bills and then make some payments late to screw the other person in the divorce, but that is ridiculous. If you try to screw up their credit, your credit is going down too. So why bother playing such games when it’s just going to cost you more in the end.
Also, make sure that you have a copy of your credit report so that you can keep notes of the changes in your rating. This way you can’t get in trouble if your ex tries to play the credit game and starts buying things with your name and then not paying for it.