Matthew and Hannah were going through the financial negotiations in preparation for their divorce proceedings and both had a desire for Hannah to stay in the house with their two children. They had other assets that could be split so Hannah would not have to buy-out Matthew from his portion of the equity of the house.
Matthew’s attorney implied that Hannah would just be able to assume the current loan, allowing her to keep the current monthly payment, which also decreased the amount of monthly spousal support needed to be paid by Matthew.
Hannah, uncertain of the financial requirements of the home, reached out for Divorce Mortgage Guidance. It was quickly discovered that the current mortgage in fact was not assumable, and a full refinance would be required to remove Matthew from the loan and the deed of the home. Hannah also would need to rely on an increased amount of spousal support in order to qualify for the new loan, as her job income itself was not enough to meet the required ratios of qualifying for a new loan.
Hannah’s attorney was able to restructure the payment plan and the divorce terms to allow Hannah to stay in the house before the negotiation phase was completed.