Your divorce settlement may allow you to keep the Maryland home that you shared with your spouse. However, you may be required to take your spouse off of the mortgage. There are a couple of methods that can be used to accomplish this goal.
A mortgage may be eligible for transfer
In most cases, a mortgage cannot be transferred to a new borrower. However, an exception may be made if you need to take your spouse off of the mortgage under a divorce settlement. The lender will likely want to do a credit check or take other steps to ensure that you will make on-time payments.
Refinance the existing loan
The other way to get your spouse off of a mortgage is to refinance the loan so that it’s in your name only. This may also allow you to cash out any equity that is in the home, which would allow you to compensate your spouse for his or her portion of the equity. You may be able to refinance your home loan without the need to pay closing costs, and it’s also possible that you’ll receive an expedited closing timeline. Unfortunately, there is a chance that your interest rate may be higher than it was when you took out the original loan.
Assuming that the home is a marital asset, you will likely have the right to ask for it as part of a final divorce settlement. It may also be possible to receive other items such as funds in a joint bank account or a retirement account. Alimony and child support payments may also be part of a settlement.