What Happens to a Mortgage After Divorce?

Category: Real Estate

Not every couple going through a divorce is going to make a profit from the sale of the home, and that selling it will clear off the mortgage. There are times where the value of the home is lower than the mortgage. If the buyout partner cannot qualify for a loan modification after divorce or come up with other ways to buy the house, then it creates a difficult situation. What could possibly be arranged is putting off the buyout or selling the house. It means an agreement would have to be reached to this effect by the two spouses.