What Happens to the Mortgage in Divorce? #AmericanDreamTV S4 E10

Hey everybody Kelly Zitlow here at
Cornerstone Home Lending for your mortgage minute. So Randi Burggraff a
divorce attorney I’ve known her for a million years she came by and we were
chatting today about a situation and I’m like oh my gosh this is a great topic to
share. So here’s the scoop I am seeing more and more people going through
divorces and I’m seeing more and more final divorce decrees where one party
has decided to retain the home but there’s nothing in that divorce decree
that requires that mortgage to be refinanced and I think what people don’t
understand is if there’s a party retaining the loan that was jointly held
even though they’re disclaiming their interest it’s not going to mean anything
if the person that retains the loan forecloses right or is late on that. I
see so many people where their credit is trashed.
So I, just fill us in tell us like what do we need to know? Sure, Kelly brings up
an absolute great point because the important thing that parties need to
understand when going through a divorce Arizona’s a community property state
what that means to you is that items assets debts that were obtained during
the marriage are a presumed community and that can be debt. It doesn’t matter
if it’s held in your name or held jointly you can still be some level of
equal responsible for that right and so it’s very common someone wants to stay
in the home the other spouse doesn’t care we do a whole buyout situation but
that’s the biggest thing you’ve got a refinance that loan and I always set up
my divorce decrees or ask you know if I’m doing it before the judge to include
protective languages if it’s my client who is not staying in the hall it’s
because I want to make sure that they’re protected I don’t want to run into a
situation where two years from now some of these defaults on that loan and all
of a sudden they’re on the hook right so you want to do things about when the
refinance has to take place by what happens if they don’t refinance what
recourse is available what happens if they’re late during on the mortgage
during the refinance process what recourse is available so that’s why it’s
important to talk to a family law attorney in addition to the the lender
to making sure that all of these boxes are checked prior to the divorce be
final right because they’re absolutely can communicate and make sure that
everything’s on tracks for more information check out Kellyzitlow.com We did this whole conversation about this and get really deep into some
other nuances and Randy how can people reach you if they have questions?
I’m Randi Burggraff if I’m a partner at Burggraff Tash & Levy and you can reach us
at BTLfamilylaw.com or by calling our office 480 307 6800!

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