Divorce is a difficult experience for everyone involved, and the details of sorting out property can be overwhelming. One of the items you will likely have to deal with is the refinancing of your home if both people were listed on the mortgage. How and when this happens will depend on the terms of your divorce. Refinancing To Remove An Owner In the event that one of the previous spouses will retain ownership of the home, it will be refinanced to a new loan that is solely in that person’s name, removing the other party’s liability for the mortgage and property. This can usually be done in a straightforward manner. The new sole owner will take out a loan and pay off the previous loan in the process. In this case the closing costs will be the responsibility of the new sole owner. Once the refinance is complete the other party will no longer be responsible legally for the mortgage or the home itself. If there is any equity in the property, and cash is taken out during the refinance, the courts will determine how this is distributed during the divorce proceedings. It may be split or belong to one […]
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