Texas Owelty Loan Specialists

Owelty Mortgage Loans in Texas: A Unique Solution for Dividing Property

Life changes—whether it’s divorce, inheritance, or a shift in family responsibilities—often come with financial and emotional complexity. When property is involved, those changes can be even more difficult to navigate. That’s where owelty mortgage loans come in. This unique type of home loan helps divide equity fairly between parties when a property is being awarded to one owner while compensating the other.

At Your Mortgage Guy For Life, LLC, we specialize in guiding Texas homeowners through the owelty process with clarity, compassion, and care. Whether you’re finalizing a divorce or working through an estate or trust, we’ll help you access the equity you need to move forward—without the stress of figuring it all out alone.

What Is an Owelty?

An owelty is a legal term that refers to a financial arrangement where one party compensates another to equalize the value of property being divided. In practical terms, it’s commonly used when real estate is owned by more than one person and needs to be split fairly, often in situations like divorce or family trust settlements.

In these cases, an owelty lien is recorded against the property in favor of the person receiving their share of equity. The property can then be refinanced to pay off the existing mortgage and the owelty lien in one seamless transaction. While many choose to refinance to pay the owelty, it can also be paid in cash.

Owelty Mortgage Loans and Divorce

In Texas, where many homes are held in common law ownership, divorce often triggers the need to divide equity in the marital home. If one spouse is awarded the house in the divorce decree, the other is often entitled to a fair share of the home’s equity. An owelty deed is used to formalize that division.

Here’s how it typically works:

• The spouse staying in the home agrees to buy out the other spouse’s share of equity.
• An owelty lien is created in favor of the departing spouse.
• The spouse remaining in the home refinances the property to:
  • Pay off the current mortgage
  • Pay the agreed-upon equity to the departing spouse through the owelty lien

This allows the person keeping the home to move forward with a clean title, while the departing spouse receives their share of the equity—without the need to sell the home.

Owelty Mortgage Loans and Family Trusts

Owelty loans are also commonly used in estate situations involving family trusts. For example, if multiple siblings inherit a home, but only one wishes to keep it, an owelty deed can be used to ensure the other siblings receive their fair share of the equity.

The process is similar to a divorce settlement:

• The sibling keeping the home agrees to buy out the others.
• Owelty liens are created for the shares due to the other heirs.
• The heir retaining the property refinances the home and pays off both the existing mortgage and the owelty liens.

This allows for an equitable division of inheritance while preserving the family property for the person who wants to keep it.

Trusted Help for a Complex Process

At Your Mortgage Guy For Life, LLC, we understand how sensitive and detailed owelty transactions can be. We take the time to explain the process in simple terms, coordinate with your attorney or title company, and structure the refinance or cash-out plan that fits your unique situation.

We’ve helped countless Texas families use owelty mortgage loans to avoid unnecessary sales, resolve disputes fairly, and move forward with clarity and confidence.

FAQs About Owelty Loans in Texas