After the Great Recession, it’s become extremely common for spouses to have trouble with refinancing a home in Brooklyn after a divorce.
Between tightened lending standards and the fact that so many experienced financial disruption that damaged their credit during that period, many divorcing couples are left in a situation where one would like to retain the home, but there doesn’t seem to be a realistic way to achieve that goal.
There are always options when a home can’t be refinanced.
In many cases, the house may be underwater and isn’t a good candidate for sale, in which case you may be able to negotiate with the bank to allow you a short sale.
Another option, depending entirely on how well you and your spouse are able to work together, is to retain the home as an income-generating rental property, where you share in the profits and maintenance costs, possibly with plans to sell when the financial picture is better.
This way you both remain on the mortgage, eliminating the need to refinance.
You should understand that you are hardly alone in being in a tough spot when it comes to a refi, but the attorneys at Zelenitz, Shapiro & D’Agostino can help you find innovative solutions that can work out for you in the long run.
Call us today at 718-725-9601 for a free consultation with an experienced Brooklyn divorce attorney.