Can you assume a mortgage in a divorce?
Table of Contents
Can you assume a mortgage in a divorce?
There may be options for assuming a mortgage after divorce. In order to assume a mortgage, you have to qualify individually for the new loan. Both you and your lender would need to sign an assumption agreement spelling out the terms of the assumption and releasing your former spouse from liability.
How does an assumption of a mortgage work?
An assumable mortgage allows a buyer to take over the seller’s mortgage. Once the assumption is complete, you take over the payments on a monthly basis, and the person you assume the loan from is released from further liability. If you assume someone’s mortgage, you’re agreeing to take on their debt.
What happens to joint mortgage in divorce?
Often, one spouse will remain in the home. The divorce agreement will then spell out who is responsible for paying the mortgage. “Your mortgage lender will not care about your divorce decree. Your divorce decree will in no way resolve you of responsibility for a jointly acquired mortgage loan.”
How can I get my name off the mortgage after divorce?
Firstly, you will need to seek the consent of your home loan provider to take your ex-spouse’s name off the mortgage. With the help of the lawyer or conveyancer, you’ll then fill out a transfer title form. You can usually find this on the website of your applicable state or territory government department.
