Lately, 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 could "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!