This is a question that I get asked a lot. Maybe you really want to keep the house, and it’s okay on you. Well, you have to think about this in a practical manner. Number one, can you really afford the house? Also, assuming that both of you own the mortgage, can you refinance the home, either own your own or with the assistance of a parent or sibling, somebody, a cosigner, can you refinance the loan on the house to cash out the other party of their interest in the home and remove them from liability on the mortgage? The court is never going to allow both people to remain liable on the mortgage for an indefinite period of time, so you’ve gotta be able to qualify, assuming that you both own the mortgage, which is usually the case, to refinance the home, so can you do that? And also, you have to look at what the assets are. Maybe the house is really the only asset, and there’s a lot of equity in the home because of what’s happening in the real estate market here in Colorado.
If you want to keep the home, how are you going to cash out the other person of their equity in the home? If you don’t have any other assets to do so, you’re probably going to have to sell the home. Otherwise, if you want to keep the home, and there’s a way for you to cash out the other party, you typically are given a time frame in which you can refinance the mortgage. Usually, that’s six months. I usually say, “You’re gonna have to refinance your cell in six months.” Most instances, if people can’t agree and you have to go to court, then the court’s just gonna order the home be sold. But think about that. By selling the home, you’re most likely going to have to pay a realtor, you’re going to have closing costs, maybe there are repairs that you need to do to make the home sell-worthy. So a lot of times people come out ahead if one person really wants the house, and we can figure out another way to case the party out.
So if you want to keep the home and are unsure if you’re gonna be able to, please give me a call, come in, let’s talk about, and see if there’s a strategy that will work for you.