Divorce can be one of the most traumatic events in a person’s life and almost as devastating as the death of a loved one. A major cause of personal grief, divorce can also be financially destructive, as well as emotionally and physically damaging, causing stress to all members of the family. The aftershocks can be felt for many years to come.
Being uprooted from the family home can also be a traumatic experience, especially for children that will have to leave behind their neighborhood, friends, and school. They are forced to cope with the stress and sense of loss and grief of a broken home, not to mention moving to a strange place.
In the case of a divorce that occurs in a community property state, all jointly owned property, as well as the debts, are divided up and split in half between the two spouses. If any real estate, such as a house, are jointly owned, the house can be refinanced by one of the spouses, if they can qualify with sufficient income and a good credit history.
When only one spouse refinances the house, the mortgage should be in their name only. However, sometimes this is not the case. The financial institution may not take the other spouse’s name off the mortgage unless forced to do so.
If the house is sold, the other spouse will receive money for their share. If neither spouse has the income or credit history to refinance the house, it must be sold and the proceeds split between both parties. However, if a second mortgage is involved, the profit from the sale may be used to play off this debt before either spouse receives their share of the money.
In some circumstances, the bank will not refinance the house. For example, this can happen if more money is owed on the house than it’s worth, a situation sometimes referred to as “underwater.” This house devaluation can happen quickly in an economic downturn during a recession. In such an instance, the house will usually be sold at a short sale and the bank takes a loss on the property. However, the financial loss will not be as substantial as if the house had gone into foreclosure. Thus, some financial institutions can be agreeable to allowing a divorcing or divorced couple to sell their home in a short sale.
If you find yourself in a similar situation as the one above, you should contact a certified divorce specialist to discuss your best options. Such a professional with a lot of experience dealing with divorce and the dividing of property will be able to answer your questions and address your concerns.
When banks will not allow a house to be refinanced this can cause a lot of suffering for the entire family. Sometimes a divorcing couple is forced by economic circumstances to remain living together in the house they think they can not sell because it is underwater.
This horrible arrangement can generate a lot of anger and resentment and cause anger to spin out of control, making a strained situation for everyone in the house and living conditions even worse. However, the house can be sold in a short sale and everyone will be freed to make a new start with their lives.
If you find yourself in such a deplorable situation, contact me for help to short sell your house. I will do what it takes to release you and your family from an intolerable living situation. I am a certified divorce specialist and a best-selling author. Without bragging, I can say my competent team and I have closed more short sales in a single month than most real estate agents close in their entire career. We have the experience it takes to help others in need.