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In a Divorce, a Home Short Sale Can Be the Answer

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When homeowners are facing a divorce, one of the most difficult decisions is determining what to do with the house. Because this decision can be highly emotional, important factors can be overlooked and the final decision could be a major financial mistake for both parties.

Couples under the duress of ending a relationship need to step back and look at the true financial value of the house before making a decision. Divorce is scary, so fighting to hold onto the house may provide a level of comfort. But this may be short-lived once a newly single person is weighed down by the high cost of the house. The better choice might be to sell the house, even if you owe more than it is worth. A divorce situation opens the door to getting out from under a financially upside-down house and a potential foreclosure.

Divorcing homeowners need to realize how the tremendous decline in housing values has affected the value of their house. Even if they have owned the house for as long as seven years, they still may owe more than the house is worth. With housing values continuing to decline, it may not be worth fighting to keep a house and ending up with an asset that is worth less than you owe. A better alternative may be a short sale of the house.

Divorcing homeowners can determine if they should sell the house by:

• Checking its market value. A simple way to get a "general" idea of the market value is to check the county's appraised value. This can be done by visiting the county's Appraisal District website. A more accurate way is to have a local realtor assess the value of the house.

• Checking the principal balance of the mortgage. Most mortgage companies provide the principal balance on the monthly statement, or you can call the mortgage company and ask for the "principal balance."

If the principal balance is higher than the market value, a short sale may be the answer. Most mortgage companies recognize a divorce as a justifiable reason for a short sale.

In a short sale, the proceeds from the sale amount to less than the balance owed. The bank or lender agrees to discount a loan balance due to an economic or financial hardship caused by the divorce. This negotiation is done through communication with a bank's loss mitigation or short sale department by a professional company.

For the homeowner, advantages include getting out from under an upside-down house, avoiding a foreclosure on their credit history, and partial control of the monetary deficiency.

Other considerations for divorcing homeowners include:

• Most lenders require a licensed real estate agent to list the house and conduct the short sale. The agent should be experienced at short sales.

• You should never pay anything for a short sale. The real estate company is paid by your lender after the sale.

• Beware of fraud. Make sure any company you work with is legitimate, with a business address and website. If all you have is an individual's cell phone number, this is not a good sign. Also, the company should never ask for payment.

• When deciding if you should keep the house, determine the total costs. The mortgage payment may be the largest cost, but there are also insurance, taxes, utilities, and yard care. Maintenance is a major consideration, because some big items need to be replaced every 10 to 15 years, such as a roof, air conditioning system, water heater, and kitchen appliances.

A divorce is one of the hardest and most emotionally draining events in your life, and following it with a foreclosure will only make things worse. As difficult as it may be, this is the time to look past emotional bonds to the house and focus on the numbers.

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Do Parenting Classes Benefit Your Family?

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Many people used to go to church and looked after their families. Today's statistics show that there are less people who do this and therefore the need for divorce lawyers has become widespread. Census data from 2010 reveals that break ups in rural areas are fast increasing and there is more need for these lawyers.

Today it is more likely that a divorce attorney will have more clients in the rural areas than in the major cities. Beyond the big metropolitan cities there is a chance that these attorneys will attend to couples and families who are close to breaking up.

Education is a very important reason why many people will be opting for these lawyers within the rural areas. The people in rural rarely have college degrees and this only means that they are not able to manage their marriages well thus break ups are a common scenario.

The problem here is that one person will be more educated than the other. The result of this is that each partner will have a different perspective on issues and this usually creates friction. The emerging situation is one where each partner feels like the other partner does not understand them perfectly thus leading to separation.

Today the issue of breaking up or divorcing is looked at as liberation by many people. In the past however this was looked at as a weakness and therefore everyone tried their best to hold it together. To make sure that people perceived them as strong enough many marriages in rural America tried as much as possible to keep the marriage alive.

Trying to keep the marriage together meant that each partner tried to play their role fully. The man tried to make sure the lawn was well looked after while the woman tried to ensure that the family was clean. Those that attained an education began to realize that they had no reason to stay in the marriage. Many began to discover higher levels of self confidence and as a result divorce began to increase.

The rural American society has increasingly began to need divorce lawyers and for this reason those who have attained higher levels of education have chosen not to get married altogether. While this was mostly attributed to the rural areas it has consistently come into the dwellers of the large metropolitan societies.

The demand for more divorce attorneys does not exactly mean that people who go through a divorce now want to remain single for a long time. Those who at one point had a spouse but are now single are also looking to get back onto the dating scene and restart or rebuild themselves while getting into new relationships.

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Family Law Attorneys are standing by call 1-800-564-2707

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