In Hillsborough County and Tampa, Florida, many separated and divorced individuals are forced with the dilemma of how to keep the current home during settlement negotiations.
Keeping the Home Without An Existing Mortgage:
A quit-claim deed only transfers ownership of the property, which is the easiest way to transfer title from one spouse to another. This is an ideal solution for individuals who do not have a current mortgage on their home.
A quit-claim deed can be prepared by an attorney or divorce mediator and is recorded with the local register of deeds.
Keeping the Home with An Existing Mortgage:
The only way to rid one spouse of a mortgage they are on is to satisfy the current mortgage. If the mortgage is not satisfied, the vacating spouse will still show the liability of the mortgage on their credit report. This means that if the spouse staying in the home makes a late payment, the vacating spouse will still be hit by the late payment on their credit, even if a divorce judgment shows they are not responsible. In addition, the vacating spouse will show this debt on their current liability schedule and may have future issues qualifying for another mortgage. By satisfying the mortgage, this rids the vacating spouse of any financial responsibility on the mortgage and the home.
The option of refinancing the mortgage will satisfy the mortgage debt for the vacating spouse and eliminate future financial issues related to the mortgage.
My job as a Tampa Mortgage Expert is to help divorced and separated individuals make the best decisions regarding your home and financing. It is my personal policy to offer a complimentary consultation to individuals surf the stormy waters of separation and divorce.
Leah M Ross, Personal Mortgage Consultant
~See more mortgage information for Divorced or Separated Individuals in the following articles on My Tampa Mortgage Blog: