Some people call it irreconcilable differences; others
call it incompatibility, however, after the separation is
legal, all assets within a divorce need to be divvied up
among former partners.
With divorce, almost representing every one out of two couples
and homeownerships representing 67 percent of Americans,
the chances are quite high that at some point in time, almost
every American will either get divorced, purchase a home
Regardless of where one may fall in the area of marriage
and owning property, refinancing a home is an existing solution.
Years ago, after couples parted ways after divorces, the
norm was to administer a forced sale of the property. That
way, each party netted some equity at the closing and was
able to lead his | her separate life. However, as times
have changed, there is now a more modern alternative to
selling one’s property, that of refinancing.
While refinancing is not limited to the couple who is parting
ways, the popular mortgage product delivers a serves a multitude
of purposes. In short, homeowners will refinance their property
at a lowered interest rate so they may take a little equity
out of their home and go on an extended vacation, pay bills,
bankroll a college education or, basically, fund whatever
activity the person desires.
Today, a “for sale” like is not the only alternative
to the dissolution of a marriage. For example, one spouse
may buy the other’s spouse half of the property by
refinancing the property. One company who specializes in
the innovative loans geared for the divorcing is GMAC Mortgage.
The company’s alternative to the divorce sale, authorizes
the buyout of one spouse (up to 90 percent versus the 75
percent) of the value of the property. The specific guidelines
of the refinance allow a limited cash-out increase which
gives the divorcing spouse who plans to retain the residential
property a viable incentive. The lending product is referred
to as “divorce refinancing.”