Why does the mortgage company need my divorce decree?

Why does the mortgage company need my divorce decree?

Lenders want to see divorce decrees because that’s the only way to determine if there are any support payments between the two former lovebirds. If you’re counting on support payments to help qualify for a mortgage then the decree will verify the amounts to be paid and how long they’re to continue.

How is equity split in a divorce?

How is home equity divided in a divorce?Sell the house and split the proceeds.One ex-spouse keeps the home and refinances the mortgage to remove the other from the loan.Both former spouses keep the house temporarily.

What happens to the mortgage when you divorce?

If you’re eligible, you will be able to refinance and extend your mortgage to 95% of the property value. You may also be able to increase your home loan to pay out a divorce settlement. In this situation, you may be required to pay Lenders Mortgage Insurance (LMI) if you loan more than 80% of the property value.