When a couple separates, the question arises of the distribution of movable and immovable property. If these have been purchased on credit, divorce may result in one of the spouses redeeming from the other to allow partition.
The burden of outstanding loans is then greater when the borrower who has kept the property; after separation, it is often difficult to repay a mortgage on your own after having bought out your ex-spouse’s share. There is however a solution to lighten the burden of a mortgage: the grouping of loans.
Distribution of property after divorce
A couple who separates and who has common property must decide on sharing. Spouses can agree and sell. The profits are then divided equally. But if one of the spouses wishes to keep the property (s) (even if he does not have the necessary funds) and the other agrees to sell his share, it is possible to use credit to finance the operation. The spouse then borrows to buy the balance (the share) of the other. However, before thinking of financing, you must know that for there to be a division of property, the divorce must be carried out by mutual consent. The family judge is responsible for verifying the agreement previously drawn up by the lawyers for the spouses. This agreement takes up all the details of life after divorce, in particular the allocation of property and the definition of the cash payment. It is only after acceptance of the agreement that it is possible to start refinancing procedures. After the agreement of the bank, the spouse redeems the balance of the one who wishes to dispose of the property or properties.
A buyout of credit to finance the balance
Do you want to keep the property purchased with your ex-spouse, but you do not have the whole amount required? Have you simulated a mortgage to find out if your resources allow you to be financed and the answer was negative? Especially since if the property was purchased on credit and you are still in full repayment, you are already in debt and your room for maneuver is reduced. You are therefore likely to face a refusal by the bank to grant you new credit to keep full ownership of the property in question. But all is not lost. Indeed, there is a solution that allows you to finance, alone, the property that you want to keep, while paying the share of your ex-spouse so that he can withdraw from the property: the repurchase of credit. It must be done before a notary and is granted by the lending organizations after studying your file.
To obtain a repurchase of credit you must therefore approach the lending organizations. In addition, current credit conditions are ideal for borrowing. Real estate interest rates are exceptionally low. 1.3% over 20 years on average and you can hope to have up to 0.93% over 20 years for the best records!
If in addition to the balance that you buy, you want to group other loans in progress (car loan, work loan, etc.) and even build up cash (to pay lawyer fees for example), you can apply a grouping of loans. Free tools are available on the web to perform a credit buyback simulation. The organization that accepts to finance you balances your outstanding credits, merges them and then you only owe one monthly payment to be reimbursed to a single creditor. The advantage of buying one or more credits is to be able to match them into one but also to lower the amount of monthly payments. The duration of the loan is thus extended to allow you to repay less and earn more in the remainder.