When the divorce agreement awards the house to one spouse and the mortgage obligation to another, this could spell great peril. The spouse in the house often doesn’t know if the "mortgage spouse" stopped making the payments.
The billing address usually gets changed to the mortgage spouse's new address. The spouse in the house does not get any late notices about non-payments until it’s too late.
Even though house spouse can claim that the mortgage spouse is in contempt of the agreement, the damage is already done. The back payments and legal fees often make it too hard to catch up and cure the arrearage.
The house is now headed to short sale or foreclosure. Foreclosure often leads to bankruptcy.
So what should be done if you are a spouse that got the house?
- You still have the right to call the lender every month to confirm the payment was made.
- You have the ability to check the payment history online.
- You may also call your lender to determine what other early alert systems they have. Can they email you late notices? Can they mail you duplicate billing statement copies?
You don’t want to be totally blindsided about the arrearage when the sheriff knocks on your door to serve you with an unexpected foreclosure lawsuit.
Dave Halpern
Real Estate Broker, Louisville Short Sale Expert Realtors
(502) 664-7827
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Sellers looking for foreclosure help in Louisville, KY should call Dave Halpern, Realtor, Louisville Short Sale Expert Realtors, (502) 664-7827.
I will provide detailed information about foreclosure options and short sales. We help dozens of sellers avoid foreclosure every single year in Louisville, Jefferson County, Oldham County, Bullitt County, Shelby County, Nelson County and Spencer County.
We can help. You have options. Call even if you think your house isn't sellable. Many testimonials available.
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