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Divorce and Foreclosure Questions

 

Divorce and Foreclosure Questions

Spouses who are about to undergo a divorce find themselves also facing a possible foreclosure on their property. A good idea is to learn the most popular divorce and foreclosure questions before making any decisions. You will have some choices to stop the foreclosure from occurring. It all depends on if one partner wishes to retain the property as part of the divorce settlement or both partners want the house. 


One good way is to have your divorce lawyer draw up a master divorce agreement. This will outline how the property is to be divided in the case of a divorce. Your divorce lawyer will help you decide if this is the best way to stop foreclosure from happening.


Should You Keep or Sell the House?

When it’s come to that divorce question, the answer is complicated. There are several things to count: children, the cost of the house, etc. But it’s better to know the most popular situation every spouse meets during the divorce and foreclosure process.

If One Spouse Wants to Keep the Home

When one of the spouses wants to keep the house, there are many things they can do. For assuming the mortgage, they may want to show that they're financially secure enough to cover the monthly obligations in order to prevent foreclosure. Most mortgage agreements have due on sales clause, but it may not be enforceable in the event the house is transferred during a divorce. There are two main choices in such situations. If you opt for neither of those measures, along with the partner who keeps the home stops making payments under the mortgage, the two spouses may face a foreclosure following the divorce. This may harm the credit of both spouses and leave both of them accountable for any lack of judgment.

If No One Wants the Home

The next divorce and foreclosure question happens when spouses want to keep the home. You still should try to prevent foreclosure in case you do not need to maintain the house. The spouses might have the ability to market the house to pay off the loan, or they may be able to agree on a short sale with the lender. 

To ensure that you know all of your choices in this complex scenario, contact a foreclosure attorney. If none of the spouses wants to keep the house, there are few available options:


  • Sell your home and repay the debt

  • When the property value has gone down the market value, you are able to arrange a Brief sale after getting approval from the lender

  • Rent out the house and use the rental income to make the payments

  • Completing a deed in lieu of foreclosure

If Both Want to Keep the Home


If both partners want to maintain or remain in the home, this may create potential problems, finally resulting in foreclosure. Spouses may have to select the items to the court that will issue an order to market the house. This is only going to lead to increasing the price of the procedure, as every party will have to cover court and legal fees and make the situation harder.

What Happens to the Mortgage After You Divorce?

In this situation, the mortgage belongs to both of you. It will be up to the bank to decide who it will sell the property to. You will be able to continue to live in the house until the bank sells it. After the bank sells the property, you will split the profits between you and your ex-spouse.

What happens to the mortgage, if you and your spouse divorce and you buy another home?

When you divorce, you should give the property back to the mortgage company. They will cancel the mortgage and refund your loan if you get another home. This can be easier to accomplish if your spouse buys another home and you buy an additional property with the proceeds from the divorce.

How Does a Mortgage Work After Your Divorce?

 Any type of property you have is covered by mortgages. Even houses and cars that are not completely paid off can be considering mortgages. So you shouldn't forget those things and contacting both divorce and foreclosure attorneys.

How to Avoid Foreclosure After Divorce

If you live in a state that uses a due-on-sale clause, your best strategy may be to try to work out an arrangement with your spouse to purchase the property at its current value. If you can come to an agreement, you will save yourself a lot of money. The courts will most likely award you the entire mortgage along with any additional back payments if you can prove that you purchased the home for less than it would be sold for at the auction. You may also be able to avoid foreclosure by working out a plan for selling the home as quickly as possible. The quicker you sell the house, the lower the price you will get.

Avoiding foreclosure after divorce is also possible if you are willing to do a little bit of research. One good way to save money is to set up a short sale with your spouse. Simply offer to buy the house for less than you owe your lender. If they agree, you may be able to get your debt reduced to an amount that you can pay on a monthly basis. As long as you continue to make timely payments after the divorce is final, your lender will consider you as a reliable paying customer and the debt will be eliminated from your credit report. This is the most common divorce and foreclosure question and the best way to get the full answer is to contact a lawyer.


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  Divorce and Foreclosure Questions For Investors What do you need to know about divorce and foreclosure? Divorce and foreclosure concerns both the parties in the divorce. In a Divorce, one spouse (known as the Plaintiff) can file for divorce and request that their prior marriage is nullified and their name be removed from the marriage records. On the other hand, the Husband (or "Plaintiff") can ask that his name be removed from the marriage records and that the plaintiff spouse not be able to obtain a promotion or loan with their title. Foreclosures are situations where homeowners who were unable to pay for their mortgages suddenly lose their homes. The initial sale of the property is done under "prevention of foreclosure" and all capital gains tax and insurance are paid by the selling party. However, the homeowner still has to pay the mortgage, maintenance, and insurance on the property. The court will issue an order to the lender to sell the home. Once the sale