Couples involved in complex and stressful divorce proceedings and wanting to rid themselves of the burden of an ‘underwater’ house should consider the possibility of a short sale. A short sale will enable the trapped owners of the house to get rid of the huge financial burden their house has become over time and make a fresh start for themselves.
A short sale is a real estate term for a house that is put on the market to sell below the total amount owed on the mortgage, hence the word ‘short’. Short sales usually happen during an economic downturn, or when a house has been extensively damaged by the occupants, or any uncontrollable conditions that will cause a home to drop significantly in value, below the mortgage dollar amount.
Sometimes a financial institution will stall a short sale, using tactics such as losing paperwork, refusing to return phone calls or emails, or repeatedly asking for more documentation. They also employ other avoidance tactics, such as not ordering an appraisal to be performed in a timely fashion.
Since financial institutions don’t encourage short sales or any other sort of dire financial strategies that must be employed by those in desperate circumstances, they try and make the whole process of a short sale as difficult and as tedious as possible. This is done to discourage as many homeowners as possible from employing a short sale as a solution to their financial woes.
During the emotional upheaval of a divorce, when both persons just want to hurry and sell the house so they can move on in their different directions, this stalling by the bank can be very frustrating to endure. In some instances, the divorcing couple is forced to live together under one roof until the short sale is complete, even if the divorce decree is final. This living arrangement can create an intolerable atmosphere of anger and desperation for all persons involved. If children are involved in the divorce situation, a negative atmosphere between the divorcing parents can be made even worse.
In this sort of stressful situation, it would be a good idea to contact a certified divorce specialist that possesses extensive experience in dealing with short sales and the reluctance of financial institutions. This knowledgeable professional can guide you in making the best decisions possible in the area of divorce and the fair division of your marital property. They can advise you what to expect when dealing with a short sale and can assist you with the sometimes lengthy process.
As a homeowner, your credit rating can be harmed by a short sale, but not nearly as much as with a foreclosure on your record. Also, there are some tax consequences that should be discussed with your certified divorce specialist. Compared with the tremendous amount of financial relief a short sale can provide, this may not be a big issue for you.
Being trapped in an underwater home along with the stress of getting a divorce can cause untold stress and emotional upheaval for everyone involved. A short sale can be a good solution to this sort of problem and can provide a financial escape plan. If you need assistance in making a decision of this sort, contact me. I am a certified divorce specialist and a best-selling author and will be happy to assist you in exploring your best options in freeing yourself and moving on to a brighter future.