Separating or getting divorced from your longtime partner when you have just bought a home collectively can get really messy, in particular when you parted ways in a hostile manner. Whichever the case, if you are planning to purchase a new property after getting divorced, there are a number of things to consider. Below are some of these things in a summary.
Selling a jointly owned home and then sharing the takings
With divorces and separations being a common incidence in this country today, it is increasingly becoming difficulty to come to an agreement on how to share jointly owned assets in a fair manner in order to move on. If neither the partners want to buy the other out or remain in the current home, the simplest way to solve this issue is to dispose of the property and then divide the takings. However, this can only be after the present mortgage fees and other charges have been paid out. There are many benefits to this approach; however, the main one is that it gives the partners a chance to have a clean break to make a fresh start with the takings from the sale.
So as to move ahead with the sale, both partners have to agree on it and on how the takings from the sale will be divided. However, both of them are required to seek for legal advice on how to go about the whole selling process. Moreover, they are also required to find a reliable Canmore realtor to help make the sale process a little bit easier for everyone.
A reliable real estate agent is in a better position to help both partners settle for a fair selling price. All that is required is for both partners to work with their selected agent so as to come to a common agreement on how to respond to the offers. The partners also will need to agree on an acceptable basic price if they resolve to dispose of the property through an auction. Although your selected real estate agent can be quite helpful when it comes to guiding you through the home selling process, the entire decision on the fairest price is the reserve of both parties.
Applying for a new loan to help purchase a new property
While divorces or separations have never been easy; they not necessarily imply giving up your dreams of owning a home. Depending on your exact circumstances, acquiring a new loan to buy a new house after a separation or divorce is a straightforward matter. But similar to applying for other loan products, you will need to offer some form of prove that you are qualified for a home financing product, though under your selected lender’s loaning criteria. This mostly includes:
• Having a good credit history
• Showing proof of having a stable employment as well as sufficient income to repay the amounts you will be advanced with
• A great loan repayment history, in particular on your current loans
In some cases, circumstances that led to your divorce might mean missing some of your mortgage payments, and hence blemishing your credit records. If you find yourself in this kind of a situation, it is important to inform your lender so as to work out a way forward. Whichever the case, you will need to prove that are able to make the payments in due course, sometimes even during the duration they were supposedly missed.
Buying out your partner and vice versa
In some cases, it makes perfect sense to keep the family home or even buy out your partner’s share. If you are planning to buy out your partner, there are two ways to do this - you can opt to pay in cash or look into obtaining a new mortgage if both names are on the mortgage agreement. Whatever option you decide to settle on, either partner will be required to refinance the home loan and put the new mortgage in his or her name only.