Real estate

Divorce Gavel
Many of the divorce cases nowadays are caused by financial issues. It doesn’t come as a surprise when after post-divorce couples fall behind mortgage and face foreclosure. Foreclosure is enough of a headache as it is. When it is complicated by issues pertinent to divorce, it can be more difficult to manage. When a couple gets a divorce, it is not an uncommon move to transfer the interest for the house to the other spouse. Usually, they do this thinking that this will place the responsibility for the mortgage completely on the other spouse. However, it just doesn’t work that way. When the mortgage is originally listed under both names, both spouses are responsible in making sure the mortgage gets paid. Even if you transfer the property to your ex, the bank won’t care about that. All the bank cares about is getting the mortgage paid off. Transferring the house to your spouse might even become a bigger financial burden. If your ex would let the mortgage go unpaid after the transfer, and it won’t be just his/her credit that would be affected, but yours as well. There is even a possibility that you would face a deficiency judgement. A deficiency judgement will order you to pay the difference between the mortgage you owe and the price the house was sold at foreclosure. It is now common to face foreclosure after a divorce even for a home you don’t own or live in. Divorce is not the only step you need to take to get rid of financial burdens and responsibility associated with the mortgage. Solution for a Happy Ever after It might be a challenge but both spouses will have to work together to avoid a financial disaster and foreclosure. There are various options available to keep this financial […]

Divorcing Your Mortgage