Getting a Divorce and Need to Sell Your House?
Getting a divorce traditionally involves dividing up a couple’s assets, but what if you owe more on your home than it is worth? If neither spouse can afford to pay the home mortgage on their own, you have options.
If you’re getting a divorce and are underwater on your home mortgage, consider a short sale.
In a short sale, your lender agrees to let you sell your property for less than the balance you owe on your home mortgage. To qualify for a short sale there are criteria you must meet. Every situation is unique, but the general criteria are:
- You need to sell your home.
- You owe more on your home mortgage than your house is worth.
- You have a personal financial hardship that will prevent you from making future payments. Divorce qualifies as a short sale hardship.
If you’re getting a divorce and need to sell your house, a short sale has benefits over foreclosure.
Whether you should do a short sale or let your property go to foreclosure depends on your situation. In most instances, a short sale makes more sense than foreclosure.
- When you want to obtain a loan to purchase a home in the future after your divorce, more opportunities will be available to you if you do a short sale.
- Contrary to popular belief, couples can be current on their home mortgage payments and still do a short sale. In fact, if you are current on your mortgage through a short sale, you can qualify for an FHA home loan afterwards without any waiting periods. The same option will not be available following a foreclosure.
- You may qualify for cash incentives by doing a short sale rather than going through foreclosure.
- In Washington State, an underwater homeowner can lose their home to foreclosure to the first mortgage lien holder and still owe the balance from the second mortgage or other lien holders.
- While doing a short sale will negatively affect your credit, there are many benefits to choosing a short sale over foreclosure.
Washington Property Solutions has helped over 1400 Washington homeowners successfully avoid foreclosure and get a fresh start, with no out-of-pocket cost to you. You can trust us to take care of all the details.
Since every homeowner’s situation is different, we always recommend that you speak with a professional who can advise you on the legal and tax implications for your circumstances. This is particularly critical when divorce is involved in the sale of your home.
Washington Property Solutions offers FREE real estate attorney consultations as part of our service.
Call us at 425-381-2233 to schedule a free confidential consultation.