If you’re facing divorce and own a house here in Tamaqua with your soon-to-be ex-spouse, you have no choice but to address what will happen with regard to the house.
The basic issues are almost the same whether you own the house free and clear or have a mortgage.
- You need to establish the home’s value.
- You must decide whether the house is to be sold or if one of you will keep it and try to “buy out” the other.
Heed these tips to make it easier on both of you:
Work hard to set aside your emotions and communicate calmly and respectfully.
Save money by sorting out what you want to do/can do about the house before you begin paying an attorney to help you negotiate your settlement.
Determine value by hiring a fee appraiser or by asking an experienced REALTOR® to prepare a comparative market analysis.
Don’t choose a REALTOR® who is a friend. This is an emotional time, and friends don’t deserve to be drawn in to that. In addition, you need someone who is completely impartial, both in determining the price and in dealing with each of you.
Do NOT look to Zillow for the value of your home. Their values have been shown to be as much as 30% off. The same could be said for any computer-generated value. This is one function that needs to be performed by an experienced person who actually views your home and compares it to similar homes that have sold recently.
Order a title report to make sure there are no liens you’ve forgotten about.
If one of you wants to keep the house, sit down with paper, pen, and calculator and see if it is feasible. Can you afford it? Remember that if you’re buying out your ex-spouse, you’ll need a new loan for a larger dollar amount. Can you even qualify for that loan? If so, can you also afford the utilities and maintenance?
Once you’ve done your own calculations, visit a lender to see if you can become pre-approved.
Also consider – will keeping the house be emotionally good for either of you? A house holds memories, both good and bad. You might be better off to sell it and start fresh.
What if one of you wants to keep the house and keep the current mortgage?
That might turn out to be the easiest way to settle your finances, but it does come with risk for the non-occupying ex-spouse.
Unless only one of you signed the loan documents, you’re both liable. It doesn’t matter if a judge awarded the house to one of you. If you both signed the mortgage loan documents, you will both remain liable until the loan is paid in full – either through a refinance or a sale.
Banks don’t care if a judge gave ownership of the house to one of you. They care about who is legally obligated to pay them. A default on that loan will show up on both of your credit reports – lowering credit scores for both of you.
I'll be happy to provide a market analysis for you, and of course I'd be happy to help you get the highest dollar for your Tamaqua house if it is to be sold.
Give me a call at 570-640-8109- I'll be glad to help.
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