Rent the Property

• Selling a property isn't the only way to remove the financial obligation of paying a mortgage loan. While locating a buyer and selling the property is the desired solution, owing more than the worth of the mortgage loan or receiving little interest can delay the sale of a property. Postpone selling the property until the real estate market in your area improves, and advertise for renters. Charge enough rent to cover the monthly mortgage payment, and acquire a security deposit from renters to cover possible damage to the property.
  
  

Quit Claim Deed

• Divorcing doesn't require a couple to sell a property; the couple may decide to retain the property. But instead of both parties living in the home, one person may move out whereas the other person decides to reside in the home. A document called a quit claim deed helps divorcing couples in this situation. By means of a quit claim deed, the spouse moving out of the home can voluntarily give up his ownership rights to the property. His name is then taken off the deed, and the remaining spouse is granted full ownership of the home.
  
  

Refinance After Quit Claim

• Quit claim deeds only take a person's name off the mortgage deed; however, with regards to the home loan with the lender, this person's name stays on the mortgage loan. Divorcing couples can take someone's name off the mortgage loan, but this maneuver requires refinancing the home loan. Whoever decides to take full ownership of the home must complete a mortgage application in her name only. Based on her income and credit history, she must qualify for the mortgage on her own -- without the help of her spouse. If she does not meet the qualifications, the lender will keep both names on the mortgage.
  
  

Considerations

• As a last resort, divorcing couples can talk to their lender and discuss other options for dealing with a house that won't sell during a divorce. If they can't sell because they owe more on the mortgage loan than the home is worth, or they can't find a renter and neither party can afford the mortgage loan on his own, lenders may approve a short sale or deed in lieu. Both options can help couples avoid mortgage foreclosure. Short sales involve selling the home for less than the mortgage due to the lender, and a deed in lieu lets couples sign over their home loan to the lender to remove their liability.