If you or your spouse has filed for divorce, you are very likely to be upset over the entire process and may be searching for divorce foreclosure options. One of the worse parts of a divorce is the financial consequences that it will have on your household budget. A vast portion of your paycheck will go into paying back your spouse’s alimony and mortgage. As well as other costs that were incurred during the marriage.
Because of this, a divorce can put a strain on your financial resources. Fortunately, you can do certain things that will help lessen the impact that real estate foreclosure divorce has on your financial future. Contacting a reliable foreclosure and divorce attorney will help you to get the best options available.
Rent Out or Sell the Home
Letting a tenant residing in the house ensures a resource to continue mortgage payments. It effectively keeps the home from being foreclosed to prevent putting a burden on either spouse.
A couple has an easier time paying for a home with two incomes than complete responsibility on just one individual. In a divorce, even if neither spouse can manage the payments afterward, selling is a wise way out. Provided that the mortgage hasn’t fallen behind, it will keep both parties out of debt.
Initiate the Short Sale
If a creditor is willing to negotiate to sell the home to avoid a foreclosure, the proceeds go toward the remaining balance. The gap between the sale amount and overall debt will be forgiven or split between the divorcing parties.
If yo, you are not familiar with the process, you should start by contacting your bank or mortgage company and asking them if they would be interested in having you take a short sale. Most likely, you will be told no unless you can provide them with personal and business financial documents. That papers should demonstrate your inability to pay your current mortgage.
Deed in Lieu Of Foreclosure
Handing within the house deed to the creditor is cutting the losses of funds put to the house. An agreement will grant freedom from owing the rest of the debt, along with the creditor is allowed to pursue the gap between the market value and overall debt. This is one of the best divorce foreclosure options as it is available in most cases.
A deed in lieu to avoid foreclosure is an alternative method of avoiding foreclosure by allowing the defaulting owner to accept a deed in lieu. This will prevent foreclosure but will not result in the delinquent property being sold. In a deed in lieu, the lending institution or bank accepts the property’s note from the owner and then replaces it with a deed in the same name. Once the deed in lieu has been executed, the property can be sold and transferred to the new owner. This allows the foreclosure to occur if the property owner does not accept the offer of a deed in lieu.
Assume the Mortgage
A spouse who wants to remain living in the home would logically take more possession of the mortgage’s remainder. When the name on the contract has been changed after lender approval, an obligation is transferred. It can be more challenging to keep up with the commitments of losing a source of income. But this is often taken into consideration when deciding which partner gets the home.
Refinance the Mortgage
One of the first things you need to do when you refinance the mortgage is to calculate exactly how much home equity you have in the house. Calculating home equity is not that difficult, and you can even do it online. When you find out exactly how much home equity you have, you can decide whether or not to get a new mortgage or renew the current one and get a better interest rate. Most homeowners will just get refinancing to reduce the interest rate and save money. But if your goal is to save up for a large purchase such as a home, or if you want to do some repairs or improvements, or just want to pay down some debt, then refinance the mortgage interest rate is the way to go.
If you plan to refinance the mortgage for a shorter-term, you can get a great interest rate by doing a short-term refinance. Doing a short-term refinance means that you take out a loan for a shorter term of usually about five years. The refinance length does not affect the validity or terms of the new loan, and you can still get all the benefits of refinancing the mortgage. Which spouse will pay mortgage after divorce depends on your divorce decree and foreclosure status.
Homeowners can easily avoid the hassle of filing for bankruptcy by going through loan modification in foreclosure. It is always advisable to advise an expert to save the house from foreclosure and prevent further losses. They provide the homeowners with effective tips to keep the pressure off their minds while dealing with the lender. This is important because the homeowners may choose foreclosure over the other alternatives.
Talk to Attorney about Divorce Foreclosure Options in Ohio
The last and most sure divorce foreclosure options is to contact a foreclosure attorney in or after divorce. They will be able to offer you advice and will review your divorce decree and foreclosure terms. You may not know what options are available to you. Still, if you have a contact foreclosure attorney, they will give you their professional opinion on your situation. They will inform you of the legal steps that need to be taken. Also they will tell you what options exist outside of the courts, such as short sales and forbearance.
Many homeowners find that they cannot sell the home fast enough to prevent the bank from going into foreclosure. In these situations, contacting a contact foreclosure attorney can be highly beneficial. Foreclosure attorneys understand all of the foreclosure laws and will work hard to help you save your home from foreclosure.