For many young couples, mortgage is the next step in marriage. Each of us wants to have our own apartment, but they are too expensive to buy for cash. Banks come to the rescue by borrowing big money for a long period. They are getting easier so there is a high demand for them. But what about when life in marriage does not go well, and the only thing that connects two people is a loan? Who will pay him back after divorce?
Divorce and credit
During a divorce, usually everything that former spouses have is equally divided. The situation is different with a mortgage, where even after divorce 2 people are jointly and severally liable for him. The bank is an institution that is not interested in what relations the borrowers are currently in. For him the most important is the installment date, regardless of who will pay it back.
Spouses after divorce can agree among themselves who will repay the debt. However, you should know that even if, after agreeing, the party that was to repay is not doing so, both he and the other person may be held liable for default. Usually it starts with debt recovery, and may even end with a bailiff’s execution. Two people who are pregnant paying off their mortgage are equally responsible for it.
Mortgage after divorce
There are several options to avoid financial problems with your former partner. It is worth determining financial issues immediately after divorce, because they can lead to a big dispute.
Sale of an apartment with a loan
The first way may be to sell an apartment with a loan . The procedure is not simple but possible. Couples after divorce often decide on this solution, but the problem comes when one of the parties wants to live at home with a loan. However, if they both decide to sell, you can also ask the bank if early repayment will be charged with additional costs. Banks may charge a commission for faster repayment – all depends on the policy of the financial institution. It may turn out that the equivalent of an apartment is not enough to pay off the entire loan, so it will not be profitable.
One person stays in the apartment with the loan
If one of the parties after the divorce does not want to sell the apartment, and decides to stay in it, which gives her the opportunity to take over the entire property – including a loan. Such action should not be stated in words, because in the eyes of the bank the former spouses are the owners of the loan. Therefore, we should go to a notary public and sign a given contract in his presence, which will specify which party will be obliged to repay the remaining part of the loan. Of course, the bank must also agree to this. We cannot leave loan repayments to a person who is unfit or in a difficult situation. The bank will not allow itself to risk default mortgage. Therefore, to get the full right to take over an apartment with a loan by one of your spouses, we need the consent of the lender.
Earning from renting
Renting an apartment is a good investment in the future. When the loan is repaid, we stay with the apartment, which we either sell or continue to rent, where our account receives fixed cash every month. If you pay back a loan with many installments, it means that the installments are quite low. After divorce, the loan can be repaid from renting the flat so that no spouse is financially charged.
Nowadays, many people take apartments on credit, just for rent. Money from the lease covers the entire monthly installment, and the surplus goes into the pocket of the owner or owners. This solution is the safest and, in our opinion, the best for couples after divorce.
Let’s get along – we will avoid problems
A divorce with a loan does not have to be a fight, all you have to do is get along. The very fact of dissolution of a marriage brings unpleasantness, and adding financial problems to it can lead to big problems. It is worth avoiding this and immediately determine the issues related to the mortgage after the divorce. Former spouses may take advantage of one of the three options described above, or continue to pay the liability as it has been done so far. One month one page and the other the next. They can also do it in half. No matter how they choose, the mortgage must be paid back on time and without delay.
Not always, but often problems can arise when one of the spouses has to pay maintenance. Credit + maintenance for one person can be a heavy burden. Unfortunately, as well as loans or money for children must be paid, because the lack of payments is associated with unpleasant consequences.