In the case of divorce, it is possible for one spouse to buy out the others interest in their former marital dwelling.
Divorce can be a very emotional process, and decisions are often made during divorce proceedings that can affect both parties and their children for the rest of their lives. If you are contemplating how to divide, transfer or buy out your husband or wife in a divorce, it is imperative that you select a mortgage specialist with experience handling these matters. Using the right broker can help you remove emotion and have someone involved whose main interests are aligned with your own.
A divorce buy-out is a very common type of refinance loan, especially with the rising number of divorces that happen throughout the nation each year. Working with a professional and experienced mortgage loan officer on your refinance for your divorce buy-out loan is very important. Please call 888-418-4467 or email at info@TheMortgageU.com to speak with a loan officer that is experienced in this type of financing.
Buying out a spouse alone is generally not considered a cash-out transaction, as you are simply paying off a lienholder.
Never try and work out a divorce buy out settlement amongst yourselves. Always work with a seasoned mortgage broker and your divorce attorney to ensure both parties are equally protected.
It is important for the displaced spouse to be removed from the current mortgage obligation and deed by paying off the current lien. A mortgage holder will generally not remove a borrower from a mortgage or relieve them of the obligation for any other reason.