In the context of a divorce, the mortgage can cause many questions, because subscribed to two, it must also be refunded to two, unless one of the two borrowers wants to buy the share of the other, we speak then of balance.
Divorce and mortgage
The home loan is a financing that we will subscribe for a long time, it can invest in stone and acquire his first real estate, or even invest in second homes or rental. Simply, a good number of couples subscribe together a debt thus allowing to have a better capacity of borrowing and to be able to buy a property bigger, or even better situated. Borrowing from two implies solidarity in any case in the repayment of debts, even more if the spouses are married and under the regime of the legal community reduced to acquests.
Under this regime, the property belonging to the spouses before marriage remains the property of each, however, the property acquired under the marriage (as well as the debts) belong to both spouses, even if one of they are the only borrower, which is generally rare since the spouses are in solidarity with the debt in any situation.
How to buy the mortgage in case of divorce?
If a separation occurs and follows a divorce, it will be necessary to make a decision on the mortgage that is being refunded. For the bank, the situation does not change anything since the spouses are in solidarity and therefore, they will have to repay their debts even if they are separated and divorced. In this case, several solutions are possible. The two former spouses decide to resell the property and the money from this resale will be used to prepay the credit (maximum charge of 3%).
One of two spouses can also ask to buy the other’s share and in this case, it is a real estate loan buyback, ie a financial institution will propose to buy back the loan in repayment and allow one spouse to buy the other’s share, so-called cash. He can thus pay this sum and in passing, he becomes the sole owner of the property, all this is recorded during the visit to the notary.
Simulate a home loan buyout with divorce
The redemption of a cash payment can only be made as part of a credit redemption, so it is necessary to establish an online simulation and consult the offers proposed to start the investigation of the financing file. If the spouses are in the process of divorce, it will be necessary to wait for the final judgment because the repurchase of mortgage loan can not take place only with the agreement of the co-borrower, and the instruction would imply that the two spouses are once again united debt. We must wait until the end of the divorce so that one of the two spouses can take the necessary steps. The simulation can be done before, it allows to have an idea of the rates and conditions of repayment, what is more, it is free.