Jan 31, 2022 · As an attorney will tell you; take all steps to AVOID foreclosure after divorce. How to Avoid Foreclosure after Divorce. As we have talked about previously, foreclosure is bad for both the lender and the borrower. Being such a negative situation for both parties, the opportunity to compromise and help each other through difficult times is great.
Do Not Sell My Personal Information. 7031 Koll Center Pkwy, Pleasanton, CA 94566. master:2021-12-22_10-02-24. Divorce and foreclosure often go together. If you find yourself facing a divorce, you might have questions about your current home mortgage, like who's liable for the debt after the divorce and how you can avoid a foreclosure.
Divorce and Foreclosure. Divorce and foreclosure often go hand in hand. Here are your options to avoid foreclosure if you are divorcing—whether you want to get rid of or keep the home. Reverse mortgage rules might be able to protect you if your spouse passes away, but you aren't named as a co-borrower on the mortgage.
Most mortgages have a due-on-sale clause that states that the mortgage must be paid in full before the property can change owners. When one spouse decides to stay in the family home after divorce, this is considered a transfer of ownership.
Many lenders will tell you that a divorce decree does not remove someone from a mortgage. The cleanest way to avoid foreclosure after divorce is for the spouse who is going to live in the family home to refinance the mortgage in their name. As long as the spouse has an adequate credit score, most lenders will allow this to happen.
One element of property ownership that gets lost in the discussion of divorce and foreclosure is the quitclaim deed. The spouse who is assuming ownership of the property should also insist that the other spouse sign a quitclaim deed. This means that the property and the home will all be in one name.
If both spouses are registered owners of the property and responsible for the mortgage, then sometimes it can be a lack of understanding of how lending works that leads to foreclosure.
Contact Larry to find out how he can help you. You can contact him by phone at 954-458-8655 or by e-mail through this web site to schedule an appointment so he can help you with your mortgage foreclosure issue. He offers a free initial consultation.
During a divorce, whether friendly and amicable or frosty and antagonistic, the husband and wife will have to split their shared property. Legally, if they can’t make the decision of who gets what between the two of them, then a judge can make that call.