Navigating a Shared Mortgage After a Divorce: How to Make the Right Decision

When a couple decides to go their separate ways, thousands of procedures must be carried out and important decisions must be made, such as what to do with the shared mortgage of the home in which he resided. Although it is a complicated situation, everything must be left well tied up to avoid possible embargoes and future problems.

In the case of divorce, the obligated to pay the mortgage It will be the spouse or spouses who have taken out the mortgage loan. If both spouses who own the mortgage, Both are obliged to pay the mortgage payments to the bank.. In fact, a shared mortgage can continue to be paid despite being separated, since the bank does not care about the marital status of the holders.

This is how you can get out of a shared mortgage

Despite this, there are many couples who, after a divorce, no longer want to have ties with their ex-partners. Luckily, there are several possibilities to end a shared mortgage: sell the home; giving of payment o renegotiate loan ownership with the bank.

Sell ​​the home

Getting rid of the home by selling is perhaps the first option you think of, although it is very likely that finding a buyer takes a long timedepending on the type of property in question, and lengthen the divorce process even more.

On the other hand, this option brings two problems: on the one hand, lThe sale of the home can dramatically lengthen the divorce process and on the other hand It is very likely that you will not get the price at which you bought it.given the devaluation of the square meter that the market has experienced.

Giving payment

Dation in payment basically consists of pay off the remaining debt on the mortgage loan by handing over the house to the bank. In this way, both owners are exempt from the debt.

Renegotiate ownership with the bank

The debtor subrogation It is a process by which it is possible to make changes in the ownership of a mortgage loan. In this way, the new owner becomes the responsible for returning the money lent by the bank at the time the mortgage was signed.

To make a name change on a mortgage, it is necessary for the bank to accept subrogation. That is, it must request the bank to subrogate the debtor and then the bank must carry out a feasibility study of the subrogation.