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Divorce and home loan refinancing

For many Texas residents who divorce, one of the largest issues they have to deal with is how to handle their home. If a couple does not want to sell the home or one of the individuals want to keep it, they may negotiate for one person to keep certain assets while the other retains the home. In many cases, a divorce decree will require the individual keeping the home to refinance the home in their name only.

Refinancing will prevent the former spouse from having access to the home or equity, but it will also absolve them of obligations under the original mortgage. However, there are times when refinancing is not possible. Even if an individual wants to meet their legal obligations as outlined in the divorce, lenders may be unwilling to issue a new loan in only one name based upon that person's credit.

As many homes are still under water as a result of the housing crisis, people may discover that they do not have the financial wherewithal to handle the fees and increased payments associated with a refinance. Even if someone has the best of intentions, this can still end up leading to problems for the former spouse if the existing loan goes into arrears.

While there are circumstances where ex-spouses cannot refinance a home, there are also times where they will refuse to do so. It may be that they do not want a higher interest rate or simply do not want to go through the process. This could form a basis for a potential contempt proceeding based on non-compliance with the court order.

Source: Fox Business, "Ex Won't Refinance to Take My Name Off House", Justin Harelik, December 04, 2013

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Bruce Turner

In addition to his law degree, Bruce Turner has a master's degree in tax law and is Board Certified in Commercial Real Estate Law by the Texas Board of Legal Specialization.

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Turner, Bruce E.
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Bruce Turner with Bennett, Weston LaJone & Turner, P.C.

Attorney Bruce Turner is located in Dallas and represents people and businesses throughout DFW and the Metroplex, including Denton, Carrollton, Lewisville, Flower Mound, Farmers Branch, Irving, Las Colinas, Corinth, Highland Village, The Colony, Plano, Frisco, Allen, McKinney, Mesquite, Grand Prairie, Garland and Grapevine as well as Collin County, Denton County and Dallas County in Texas.

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