Divorce Foreclosure Options

A divorce and foreclosure situation are one of the most difficult to be in. It can be an overwhelming experience to say the least, but if you have some real estate assets and equity, there are certainly divorce and foreclosure options for you. In this article, we will discuss divorce foreclosure options to stop the foreclosure process and possibly save your home from being taken from you by your ex-spouse and then sold to pay off some of your creditors.

Who Is Responsible for the Mortgage After Divorce?

Upon divorce, many women try to work out an arrangement with their husbands where they both own the home. This is not always possible, and sometimes the women end up paying the mortgage. If you are responsible for the mortgage after divorce, it's important to know how to deal with the bank to get you the best terms on your new mortgage loan.

Get a copy of your husband's income tax returns and credit card statements. Take these items to your lender. The bank will require you to show them all of your financial information, including income, expenses, and other details. Your income and credit accounts are a great way for the lender to see how well you are financially organized. Ask the lender for a copy of your last six months' income tax returns and any recent credit card bills.

If you own a home that is paid off but still owe a mortgage, your lender will likely require you to start making payments to the account immediately. They will then give you a date, usually around 11 months after the divorce, when they will begin to make the monthly payments. If you start late, you risk having the home foreclosed upon by the lender.

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Once you determine who is responsible for the mortgage after divorce, write a separate cheque for each spouse. Be sure to send these cheques early on to avoid having them returned as late payments. Write down each cheque and the number for the lender. This will help you prove to your lender that you were trying to make the mortgage payments on time, even though you're divorced. If you can't produce the mortgage cheques, the lender will likely take you to court.

Loan Modification and Divorce

In a situation where a couple has been married for some years or even decades, there may be some difficulty determining who the marital status of each spouse is and therefore. This is when the best divorce foreclosure option is to contact an attorney to make the determination. The same applies in the situation of individuals who are not married to each other but are related to one another by blood or adoption.

Both parties involved in a divorce settlement can request modifications to their loan mortgages. Many times, the couples involved are not married to each other but they are related by adoption or a legal marriage. Therefore, either party to the divorce can file for modifications to their mortgage loans, and in most cases, they will be granted. Either way, most of the time, a modification does not involve the involvement of an attorney although it may help in certain situations.

In order for a person to modify their mortgage loan, he or she must be experiencing an immediate and significant financial hardship. As hard that is preventing them from making the monthly payments on their mortgage. Modifying one's mortgage involves a number of factors such as a divorce, a death in the family, or a decrease in income that will cause a person to qualify for a loan modification.

 It is important to remember that loan modifications and divorce proceedings are just that - modifications; the terms cannot be changed at any cost to the homeowner once they are granted. They only become available if the homeowner is in dire financial straits and cannot otherwise qualify for other options.

Divorce and Bankruptcy Foreclosure

The most common scenario when couples are dealing with debt and bankruptcy is a mortgage foreclosure. When you purchase a home, your lender typically offers you a contract that requires you to make regular monthly payments toward the loan balance until the house is sold or you move out of the property. If the house gets foreclosed, the bank owns the mortgage, and you are stuck with whatever mortgage the bank can get to refinance the loan, resulting in a foreclosure. A bankruptcy lawyer can help you determine whether you qualify for a loan workout program that may allow you to refinance your mortgage through the hardship program, result in reduced monthly payments, forgive your mortgage early, or other options that could potentially save you thousands of dollars.

Why You Should Consider Hiring a Foreclosure Attorney

If you think you don't have time to seek out a foreclosure attorney, think again. A foreclosure attorney really understands the landscape far better than you do. Their professional expertise and judgment could save you time, assist you in avoiding pitfalls, and hopefully maximize your chances to save your house.

The bottom line is this: when it comes to divorce foreclosure options, you need to seriously consider hiring a lawyer. Hiring an attorney today means you're putting your house in his hands. You'll want to make sure that the attorney you hire is reputable, trustworthy, and knowledgeable. Then, you'll be able to sleep well at night and know that if your foreclosure case goes to court, he'll do his best to protect your interests.
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