Lending standards have tightened considerably in the aftermath of the financial crisis, and it’s common today for a divorcing couple to decide that one spouse will keep the house, only to find that lenders won’t allow them to refinance the mortgage into that spouse’s name.
This situation can become extremely delicate, especially when there are kids and the parents’ goal was to let them stay in their schools and near their friends.
There are many ways to handle a house when one spouse can’t assume the mortgage.
If the parties are on good terms and willing to work together, then they can decide on a payment arrangement to cover the mortgage.
If alimony is part of the divorce settlement, the spouse paying alimony may agree to simply make the mortgage payment entirely.
If an arrangement like that isn’t feasible, selling the house is an option for many.
But in the current market, many homes remain underwater on the mortgage, meaning a short sale or foreclosure may be the only options, which will damage both spouses’ credit.
If you’re having trouble finding a solution when you can’t assume the mortgage on your own, the attorneys at Zelenitz, Shapiro & D’Agostino can help you identify solutions that may work for you.
If you have questions regarding assuming the mortgage, call us today at 718-523-1111 for a free consultation with an experienced Queens divorce attorney.