Since the Divorce Rate is now over 50% there are many couples that are parting ways and realizing that it is not so easy to sell their home. With so many homes under water across Massachusetts and New Hampshire many people who need to sell are realizing a short sale may be the answer. In addition, many divorce agreements, legally known as decrees, are requiring the sale of the home.
In order to successfully conduct a short sale, cooperation amongst both parties is essential. The problem is when people are getting divorced they’re sometimes unwilling to cooperate and can actually be at odds. This makes conducting a short sale impossible for us. This is why many people getting a divorce end up getting foreclosed on. That does not help anyone and is not good for either of the borrowers long term since they’re both responsible for the mortgage and can be pursued for the deficiency balance by the bank.
As hard as it may be to work together to sell the home through a short sale it’s worth it. The credit effect of a short sale is usually not as bad when compared to a foreclosure. You can buy a home again in 2-3 years instead of 5-7 years and the best part is the debt is usually forgiven with a short sale.
The good news is even if the mortgage is being paid on time you are still eligible for a short sale due to the fact that Fannie Mae, Freddie Mac and almost all major banks do consider a divorce to be a reason for “Imminent Default.”
Many times borrowers just have to provide the bank with their divorce decree to prove there is a divorce and to show the terms of who is responsible for what. Often times a Separation Agreement can be enough.
Just to reiterate, the key is for both parties to work together to sell the home. Blaming things on each other will not sell the home. Both husband and wife need to remember that the short sale will be better for both of them long term.
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Questions about short sales? Contact us: info@shortsalene.com or Call 1-800-924-6563
