Florida Mortgage Refinance Before, While, and After A Florida Divorce?
Divorce is a reality for thousands of Florida homeowners each year, and coordination can be intimidating. Commonly, during the Florida divorce process one party will want to keep the family house. This is certainly possible, but the person staying in the home will sometimes require them to buy their ex-spouse off of the mortgage loan. This can be accomplished with a Cash out refinance.
2 Florida Divorce Mortgage Refinance Mile Stones
Florida mortgage refinancing is something we can help you with. When refinancing a Florida mortgage for divorce there are 2 separate situations to consider.
- Florida Mortgage Refinance before filing for divorce.
- Florida Mortgage Refinance After the Florida divorce is complete.
Florida Divorce Mortgage Refinance While In Divorce is (Not Possible)
Florida mortgage refinancing in the middle of a divorce is NOT possible. The reason for this is the Florida mortgage lender does not know what obligations the borrower is responsible until after the Florida divorce is complete. For example, one party may be obligated to Florida child support or alimony payments. Until the final divorce decree is complete Florida mortgage lenders cannot properly calculate the borrowers debt to income ratio.
Things To Know About Refinancing After Divorce
Remove A Name From The Mortgage
A refinance is one way to remove someone’s name from the mortgage. This protects the spouse who no longer has ownership interest in the home. This can be important if that spouse plans to purchase another home or take on other debt.
Protect Your Credit
If your name’s on the mortgage, then you have a legal obligation to pay the mortgage. If your ex kept the house but misses or is late on mortgage payments, your credit could be affected. Insisting on a refinance will ensure you’re not held responsible for debt that isn’t yours anymore.
Take Cash Out
Property values have climbed over the past several years, which means you might have enough equity to get cash from your home.
A cash-out refinance can be one way to split assets with your spouse. Say you want to keep the house but need to buy them out of it. With a cash-out refinance, you could get money from your home to pay your spouse for their share of the equity in the home.
Your Divorce Decree Doesn’t Affect Your Liability For Debt
Divorce decrees are issued by the courts at the end of divorce proceedings and state the division of your property. However, your lender is not legally required to take any action as a result of your divorce decree; that means they can still hold you and your spouse liable as long as both your names are on the mortgage.
A refinance is a tool you can use to release one spouse’s liability from the loan or divide your equity. If you decide that a refinance is right for you, you can get started online with Rocket Mortgage® by Quicken Loans®. Just fill out an online application to see your mortgage options and get an instant online approval decision.
Get approved to refinance.