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If you’re going through a divorce and you and your ex-spouse are joint homeowners, you may not need to sell your home in order to release your ex from the mortgage contract obligations. If your mortgage contract lists both your names, your mortgage lender has the legal right to obtain payments from both of you. You have several options for getting your ex off your mortgage contract, but the easiest one is usually to sell your home.

Buy Out Your Spouse: If you want to stay in the home and can afford the full mortgage payment on your own, you may be able to buy out your ex-spouse by taking out a second mortgage for half the remaining amount owed on the first mortgage, paying this amount to your ex, and then consolidating your first and second mortgages into one payment. If you’re receiving child support and/or alimony, these payments count as part of your income and can help you qualify for a loan more easily.

Maintain Joint Ownership: If you are on good terms with your ex and neither of  you can afford to buy the other out, it may be in your best interest to continue to own and pay for the house together while only one of you lives there, or you can rent it out and split the profits.

Sell Your Home: When you sell your home, both you and your ex are released from the mortgage contract. The money from the sale is used to pay off the remaining mortgage balance and, depending on the terms of your divorce settlement, you will probably split the remaining profits. If you need to sell your home quickly in order to begin renting or pursuing the purchase of a new home, a homebuying company can buy the home and pay off your mortgage balance in less than a week.

If you’ve divorced while in joint ownership of a home, what did you do?

Are you ready to sell a home fast? Call us today at 1-888-835-4758 or have your client contact us to get an offer in hours from Express Homebuyers.

When faced with a choices of losing money by selling your house versus foreclosure, where the home is taken from you, you have to carefully consider the outcome when you need to sell a house. As a loyal ship’s captain, you might be wiling to go down with the ship. As a homeowner who is underwater with too high a loan-to-value ratio or unable to come up with the house note each month, can you say the same? 

Whether you are proactive and sell or wait for the foreclosure, you will no longer have your current home. This can be painful, especially if you worked many years to buy it and then lose it for reasons outside your control. But “home” is more than four walls, so you can create a loving home for your family elsewhere and then one day become an owner again.

If you wait for foreclosure, you will endure months of harassing mail and a decimated credit score. You may be “allowed” to stay in the house until things are finalized, but you pay a big price for a few months of “free rent.” Maybe you stay because you hope circumstance will turn around, but this is long shot.

Your other choice is to sell your home at a loss, either through a short sale or by selling to a home buying company. The short sale route can alleviate your mortgage debt, especially if the lender agrees not to pursue the shortfall you owe. According to some analysts, your credit report takes a hit equal to foreclosure – but not everyone agrees with that. Most likely, you will be able to buy another one more quickly after a short sale if you get your credit back on track and have the proper downpayment. In a short sale you live in the house until closing just as in a regular sale.

If you are unable to make the payment while you are waiting for the house to sell, you still risk foreclosure. In addition, if your finances are shaky, you may not be able to recover quickly once the sale goes through. This is why, when you need to sell a house, selling to a company that buys houses is a solution that beats either short sale or foreclosure when you must sell. Short sales and foreclosure take time. Reputable home buying companies can buy your home within a short timeframe (usually about a week) and pay off the loan.

Don’t go down with the ship. When you need to sell a house, using a company in business to buy them can save time and money in real estate fees, mortgage payments, and repair costs. You will come out ahead by taking the proactive step of working with a home buying specialist.

Would you rather sell your home at a loss now or endure foreclosure in hopes of saving it?

Are you ready to sell a home fast? Call us today at 1-888-835-4758 or have your client contact us to get an offer in hours from Express Homebuyers.

Once you sign on the dotted line for your mortgage, you enter into a solid, long-lasting commitment. It can outlast the house or owner itself! To sell a house and get out from under a mortgage requires planning and approval from the lender. Aside from selling the house for less than it is worth and paying the bank the difference, here are five ways homeowners get out from under a mortgage.

Strategic default or walking away. Some underwater homeowners just stop making payments, move away, and send “jingle mail” (the keys) back to the bank. Wealthier homeowners whom find folly in paying a mortgage worth more than the house, plan for alternative housing, and abandon the property. In some cases though, if homeowners advise the bank they wish to abandon the property, may settle with a deed in lieu and return the property to the lender.

Deed in lieu. Deeding your property to the lender in exchange for being forgiven the entire amount of the mortgage is called a deed in lieu of foreclosure. The lender then sells the property and recoups a portion of the unpaid mortgage.

Foreclosure. When the bank does not get paid, they may file foreclosure on the homeowner, who is forced to leave after a court judgment. Timing varies, so many foreclosure victims are left with great uncertainly as to their futures. If they are also out of work, they may have difficulty finding other shelter.

Short sale. A homeowner can ask the bank to accept less than the loan’s balance through a short sale. This is still damaging to credit, but allows the owner more control over the sale. As widespread short sales become the norm for handling property that current owners cannot afford, the stigma and the impact on credit may diminish. With a short sale, the bank may try to hold the borrower liable for the difference between the mortgage value and the sale price.

Rent out the house. Those temporarily in bad circumstances can rent out their home and live elsewhere until they can afford to live in the house again. This approach works well in areas where rental property is in high demand and rents are substantial. The homeowner becomes a landlord, which changes the picture for both taxes and insurance. If considering this option, check with your insurance company and accountant.

Sell to a company that buys houses.  There are legitimate companies in business that buy homes to fix up and sell. This can be a fast way to eliminate your mortgage obligation. You receive a discounted amount for the house, but pay NO money out of pocket to sell it. This means no real estate fees and no renovation costs normally associated with preparing a home for showings. Since the process can be completed in a week or so, selling your home to a company allows you to beat a foreclosure filing, resolve an estate, or liquefy assets quickly.

When you owe on a mortgage, you must settle with the bank in some way. Your goal should be to sell your house in the way that costs the least in cash and time.

If you couldn’t afford your mortgage, what would you do to get out from under it?

Are you ready to sell a home fast? Call us today at 1-888-835-4758 or have your client contact us to get an offer in hours from Express Homebuyers.