Married couples usually take out mortgages jointly when they purchase a home together. If the couple decides to divorce, the issue of what happens to the home gets complicated and messy. As a result, the couple may face a foreclosure.
If you’re going through a divorce, there are options you have that allow you to dispose of your home along with options if one spouse wants to stay in the home. The biggest issue is trying to avoid foreclosure. Here, our foreclosure defense services team would like to provide you with some options to both avoid foreclosure and ways to stop the foreclosure if the lender is knocking on your door.
When Neither Spouse Wants to Keep the Home
If neither spouse wants to keep the home, you can opt to sell the home. This is usually the easiest way so that you can put the debt behind you.
However, if the bank is already moving in, consider the following:
Short Sale
A short sale is when you get the lender to agree to sell your home for less than the total balance remaining, and the lender agrees to accept the proceeds from the sale in full satisfaction of the debt. In some instances, however, the lender may require that the remaining debt be paid, making you and your spouse still liable for that balance due.
Deed In Lieu
A deed in lieu of foreclosure is when you get the lender to agree to accept a deed to the property instead of foreclosing on the home. The agreement will state that the transaction fully satisfies the debt.
For more information on foreclosure during a divorce, contact our team today.
