Home Divorce: Mortgage Mistakes Abound For Couples in Divorce

In a divorce, mortgage lates can cause long lasting catastrophic problems for your credit. You can’t ever rely on verbal agreements during a divorce when it comes to your home. I can’t stress that enough. You may think as long as you are out of the home you are not responsible for the mortgage payment…but that is a mistake.

It doesn’t matter if you move out of your home, it’s still your responsibility to pay the mortgage. Couples who own property need to learn how to divorce properly.

In the early stages of divorce, mortgage payments are usually left to the one who stays in the home. You may contribute money towards the payment but the one in the home is responsible for paying it. But unfortunately, they could stop paying or pay late at any time and your credit is damaged.

The mortgage company doesn’t care if you live in the home divorce or no divorce. If your name is on the note, then you are responsible for the payment. The mortgage company won’t take back the late payment on your credit.

You have to get your name off the title and the mortgage note either by selling the home or refinancing. That is the only way to do it. Never let anyone tell you otherwise.

If you need time to sell or refinance, take on the responsibility of making the payments yourself. That way you know they get paid on time. Your name is still on the note so those payments have to be on time to preserve your credit.

In your divorce separation agreement, you can specify how much each of you contributes towards the mortgage payment so you’re not out any money, you just have control of when it gets paid.

There is no need to come out of a divorce mortgage challenged. You can protect yourself when it comes to your credit. Divorce support groups are great for the emotional aspects but you also need divorce support for the financial aspects.

Check out my book Home Custody™. It outlines everything you have to do before, during, and after a divorce especially in your divorce separation agreement.

Your future home buying depends on it.

Hang in There!

Author: Terri Ewing
Published November 15, 2007