Ar_home_b_search
 

divorceLately, we've talked to several people who are going through a divorce - or WANT DESPERATELY to get out of a marriage.

Their real estate is holding them back.

I guess it's not surprising that folks with money issues are also having marriage issues - but there are important details they need to consider:

  • Who is on the Deed and who is on the note?
  • Is there an escrow?  If not - who has the insurance policy?  Are the taxes current?
  • If the separation agreement calls for one spouse to "buy out" the other spouse - are they qualified to do that?

One of our recent encounters had a guy with 6 jobs in the last 2 years trying to cash out refinance so he divorcecould "buy" his wife out.  They had over $50K in credit card debt, and a house that was being reduced by 7% every month per the seperation agreement.  He's a contract employee who goes from job to job.  Granted, he has the next 5 months of contracts worked out - but he's a contract employee.  He has mid 600 credit scores.  He has no cash reserves.  The house payment is currently 60 days past due.  His child support is $3000 a month.

"Why would you risk foreclosure as you wait for the house to be reduced to the "right" price?," I asked.  "Why not price the house correctly the first time?" Because they can't talk to each other.

If you are in / or considering a divorce - please be certain that you follow these basic steps to protect your credit and your assets:

  • Obtain a copy of your credit report.  Monitor it. 
  • Close all joint accounts
  • Find a real estate agent to represent the sale of the property
  • Be realistic about the repairs that need to be done and the staging required.  This is the best time to clean, declutter, depersonalize and pack.
  • LISTEN to your agent.  Listen to your counsel.  BE REALISTIC so that you can have move on with your life!

Please contact us for information about refinancing your home.  Steve and Eleanor Thorne,Mortgage Loan experts in Cary, NC  919-649-5058

 

 
This post has been included in North Carolina Real Estate News Wake County, NC Real Estate News Cary, NC Real Estate News
Post is included in group: ASK THE LOAN OFFICER
Post is included in group: EXIT Realty is GROWING...not multi-level...not profit sharing
Post is included in group: North Carolina Real Estate
Post is included in group: Posts to Localism
Post is included in group: RE/MAX Active Rain Bloggers

8 Comments on Selling As You Separate

JUN
28
2008
390,755 Points 7 Featured Posts Localism Sponsor Hit Router Attended Rain Camp Called Shot Master

Good information, Eleanor.  That last bullet applies in all situations, not just divorce.
12:09pm • #1
1,546,109 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Now that is uncannily timely. 

One of our agents is working with a buyer who has a contract on a house due to settle on Monday, the 31st.  Unfortunately, the well didn't pass the bacteria test so it has to be treated and retested.

I advised getting an extension of the settlement date for about 2 weeks.  Sounds sensible.

Nope, the house is being sold pursuant to an agreement in a divorce action.  The wife does not want to move.  She told her agent Thursday that if the house doesn't settle on Monday, she's not selling.

It's going to take about a week, no less to get the well treated and retested. 

Yep.  Divorce can cause a lot of trouble.
5:28pm • #2
6 Featured Posts

Eleanor ~ This is so sad. I guess that all logic goes out of the window when people are divorcing. What a pity. I guess it's what they say - It's a thin line between love and hate!
7:48pm • #3
JUN
29
2008
688,780 Points 117 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Eleanor,

Judges should be required to understand the practical outcome of their rulings in divorce proceedings; many times they haven't a clue as to what they're ordering to be done.

Mike in Tucson
1:59am • #4
JUN
30
2008
200,637 Points 27 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Guys - how true! We seem to talking to many people right now in this trap.  We are fortunate that here in Raleigh / Cary NC we are not in a declining market.  People need to price the house correctly - and get out of the mortgage so that it does not fall behind. 

A foreclosure can drop your credit score by 300 points!
7:34am • #5
669,185 Points 18 Featured Posts Outside Blog Called Shot Master

Eleanor,

Great topic.

A listing agent needs to be very diligent in these circumstances, being very certain that the will is there to sell.

Talking to the divorce attorneys is a good starting point.  I had one where the prospective seller had a quit-claim deed from the spouse, but seller's attorney told me the client could not sell without the spouse's approval.

Probably due to the note, but the property didn't sell, either.  Glad my sign didn't go up in front of it.
7:44am • #6
JUL
06
2008
325,008 Points 15 Featured Posts Localism Sponsor Outside Blog

All I can say is that it can get real ugly. Fortunately we are not in a community property state so not everything has to be split right down the middle. 

One to buy, two to sell - even if they are getting a divorce both have to sign to sell.

 
5:22pm • #7
JUL
08
2008
325,008 Points 15 Featured Posts Localism Sponsor Outside Blog

I think Steve dropped by my office today?  We have meetings and tour on Tuesday and I had a listing presentation.  Did you also meet Kathleen- thanks for helping her by the way.

Tracy
11:06pm • #8

What does the graphic say?

Leave a response…

(optional)
What does the graphic say?
 
Eleanorb Ambassador_large

Eleanor Thorne 919-649-5057 Cary Mortgage Loans

Cary, NC

More about me…

Steve Thorne NC Mortgage Experts

Address: 111 Corning Road, Suite 230, Cary, NC, 27518

Office Phone: (919) 649-5058

Cell Phone: (919) 649-5057

Email Me

Web Analytics

Clicky



Listings

Links

Archives

RSS 2.0 Feed for this blog

Find NC real estate agents and Cary real estate on ActiveRain.