With the crash of the housing market and unstable economic times, many marriages are stressed. It stands to reason that some of these marriages that are stressed from bills piling up and jobs being few and far between will fail. But many in this situation will wonder, can our house be foreclosed upon while we are going through the process of divorce?
Unfortunately, in most cases a home may be subject to foreclosure, even when divorce is looming. There are, however, methods which may help make the foreclosure of your home and divorce a smoother transition.
If you are considering divorce, but are unsure of how it will affect your financial situation, you're not alone. Talking to a local attorney might help you learn your options and make the correct decisions in your specific situation. To connect with a local attorney, just fill out the form below.
If neither you nor your spouse are capable of making the mortgage payments, then you may be able take some steps to try and delay the foreclosure of your home.
In this situation, you could first try and talk to the bank. Often times people assume that banks and lenders are going to be unwilling to work with them in difficult situations. Frequently the opposite is true. The lender will typically make more money if you make all your payments than if it has to foreclose on your house and sell it at an auction for less than even the current market price.
As a result, banks, and lenders generally, will prefer to work with you so they can continue receiving payments. It doesn't always work, but you may feel that it's worth a try. Lenders can be surprisingly reasonable and understanding, especially in this economic climate.
If you can't find a way to save the home, you might consider a short sale. A short sale is when you make a deal with the bank to sell the home for less than you owe to the bank. After the sale, you are debt free, but also without your house.
The bank will need information on why you qualify for a short sale, but one factor they can look at is divorce. Talking to an attorney might be helpful for you to determine if a short sale is the best option for your situation.
This is for informational purposes and is not legal advice. Speak to a local divorce attorney for legal advice about your particular situation.