Divorce and Foreclosure - Stop Your Home From Being Foreclosed on

If you have already gotten a divorce and are considering buying a home, it's important to understand the process of foreclosure and divorce. Since the property has already been awarded to one of the partners in the divorce agreement, doesn't mean the bank is going to automatically transfer the loan to that partner. The courts decide which party was the winner of the divorce and the loan changes owners. If neither partner pays the mortgage after divorce then the bank will begin foreclosure proceedings on both partners. It's important to keep this in mind when shopping for homes as lenders don't want to foreclose on a property. You can negotiate a purchase price with the bank and get a low interest rate that will make the home affordable.

A few states still allow divorce and purchase of a home with a no-money-down option or due-on-sale clause. This means that either party can buy the house with the financing set by the other spouse, but the property is then subject to the will of the deceased. If the deceased dies before the debt is repaid, the lending institution may repossess the property to settle the debt. This is in addition to the usual reasons for foreclosures such as failure to pay rents or mortgages.

In a divorce and foreclosure situation, a mortgage note is often referred to as a promissory note. The document contains details of the financial relationship of the parties leading up to the agreement of marriage and outlines the debt agreement. This is also used to state how much money one spouse has to pay for the house and the dates the house must be paid. Divorces and foreclosures take place in several different ways.

When there is a divorce, the surviving spouse (who was married first) usually pays the debts. If the divorce is finalized by a "contingency" clause contained in the marriage agreement, this often results in a division of assets. Once the debts have been paid, a court order is obtained stating that the remaining spouse is the clear winner of all debt obligations. With a "purchase contract" or "buyer loan," the buyer of the house gets first priority to buy the house. The mortgage is then transferred from the surviving spouse's name to the buyer's name.

A mortgage note is another type of foreclosure that can occur after a divorce or when a spouse takes out a new loan. In a refinance, the existing note is converted into an initial "note on property" (or "note holder note"). Then, the existing debts on the property are added to the new loan. A refinance is a popular choice for borrowers who are interested in having their old debts replaced with a lower interest rate and longer amortization period.

Another type of foreclosure is called a judicial foreclosure. This occurs when a court orders a lender to take over the house because the person that held the original mortgage has died, or the person who held the original mortgage has become incapacitated (in the case of Alzheimer's disease, senility, or paralysis). A judicial foreclosure process normally requires court approval, and most often happens after a divorce or separation. When a spouse files a lawsuit to stop the foreclosure, the spouse that owns the house can request a temporary restraining order, which is a temporary restraining order that prevents the sheriff from taking the house back during the pending litigation. The restraining order is lifted once the lawsuit is settled, usually after completion of all litigation.

Divorce and Foreclosure do not have to be an ongoing event. One way to stop it from happening is with a refinance. A refinance involves taking out a new loan and paying off the original loan plus a new one with a lower interest rate. Refinancing a divorce and foreclosure situation helps both spouses avoid losing their home because the new loan can be paid off more quickly than the original loan. In the worst case scenario, a divorce and foreclosure could result in the loss of the family home.

If a divorce and foreclosure are looming for you and your spouse, try searching online. There are many lenders who specialize in helping people in these situations. You will need to contact one or two lenders to find out if they will work with you to refinance your mortgage, or if you need to go through a lawyer. If your lender agrees to help you, a lawyer can help you draw up the proper paperwork, so you can legally clear your name from a negative mortgage note. This should help you avoid losing your home, and your financial freedom.