No matter how well you manage it, divorce always leads to some financial stress. If you own a home with your ex-spouse, things become even more complicated. Many couples find they cannot refinance their homes after divorce.
Freddie Mac expects refinancing rates to decline because of rising mortgage rates. This reality does not help your chances when you suddenly find yourself as the sole credit provider. You are never out of strategies, though, so consider the following alternatives before giving up and continuing to make payments on your home.
Sell your home
The most straightforward alternative is to sell the home. This may not be the most desirable outcome, but it might relieve you from the stress of financial responsibility and allow you to move on to a new chapter in your life.
Wait and pay down debt
Some people need to wait. This is not always easy or safe, though. You need to cooperate with your ex-spouse because missed payments fall on both of you until someone removes their name from the title.
Restructure your debt
Finally, you might have other assets or income opportunities you are not leveraging. Usually, debt-to-income is the main issue, but you might have ways to lower that and not realize it. Sometimes, a consolidating loan boosts your credit score and makes your debt more attractive to lenders. Also, your lenders might not calculate your income correctly, so double-check all your finances.
Ensure you exhaust every possibility before you give up on refinancing. Besides the methods described above, you have other financial avenues to explore. Selling your home may not be your desired outcome, but it is always available as a last resort.
