Fact. One of the leading causes to foreclosure is divorce. One party will be awarded the house in the divorce decree. All this really means is that one person gets to keep the house. Both parties may still be on the loan documents. Just because you give your ex the house, doesnt free you from the financial responsibility of making the payments and keeping a good credit rating. Often times the spouse keeping the house will let payments go behind due to a reduction of income or out of spite. Your ex can ruin your credit and ability to purchase another home for 1 year, by simply going 30 days late on the mortgage. It is essential to have the spouse who is being awarded the home, to speak to a mortgage banker and see if they qualify to keep the home with their new expected reduction of income or increase in bills. If they can in fact afford to keep the home, they need to refinance the home into their own name. If they cant qualify to keep the home with their new reduction of income, you need to sell the house. Plain and simple. I see this happen time and time again. Divorce means that the 2 parties will be living under different roofs. Both roofs or homes will have a monthly payment. One of the parties will most likely be paying child support in addition to paying for the new home they are renting or buying while you recover from the financial toll a divorce will take. Please call me to discuss you or a loved ones situation. I can refer you to one of my Mortgage Bankers that can actually put a pen to paper for you and see if you or the ex should refinance, or if they will not be able to afford the house and need to sell. Please dont get caught in this situation, now that you know the consequences. Mr Quick Sale is here to guide you through the storm.
Posted on: Fri, 21 Mar 2014 23:35:51 +0000
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