Frequenlty Asked Questions
About Divorce & Foreclosure
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Can I Get a Mortgage Modification if I’m Separated or Divorced?
Yes, but it makes it more difficult. It often requires a new signature for the spouse who is no longer living in the home. In a separation or divorce, the income that previously separated one household must often be used to support two. As separated or divorced spouses struggle to create a budget and make ends meet, they often find themselves facing foreclosure. When they do mortgage modification can be an option. Divorce is a stated grounds for establishing hardship under most private and government modification guidelines.
- Although separation or divorce is considered a viable hardship for purposes of mortgage modification, the crucial element to success is presenting a plan that shows that separation or divorce is a temporary hardship that can be overcome.
- Co-borrowers with separate households need to be extremely well-prepared in proposing budgets that are accurate and encouraging to lenders under a request for modification. It requires a well-planned, coordinated effort from both co-borrowers.
Can I Modify My Mortgage After My Divorce?
Yes, but only if you have full and documented authority to act on behalf of your ex-spouse. While Divorce Decrees often call for the transfer of marital homes to one spouse or the other, this does not separate the transferring spouse legally from the mortgage holder. That legal connection still continues with the bank, regardless of the Divorce Decree, meaning that the bank won’t adjust or address any mortgage problem without the consent and active participation of the ex-spouse – A condition that can be fatal to any efforts to speak with or modify your mortgage after your divorce.
To properly protect your future, obtain a fully documented Power of Attorney before the end of your divorce action. This will allow you complete authority to control the full interest of y our house and negotiate with your mortgage holder far into the future without any consent or involvement from your ex-spouse. Read more about Divorce and Bankruptcy Proceedings