If you are divorcing now or contemplating it, your house is a major concern in the legal process. Hopefully your house has equity. If there is equity, the house will go to the party who can refinance the other party’s name off the loan and buy out the other party’s share of the equity through the refinance process, or via a trade with other assets. Sometimes people will agree to stay on the loan for their other spouse so the other spouse can keep the house.
This is not a good idea, because if the mortgage payments are late or not made, the bank will seek collection efforts against both parties. If neither party can refinance and take the other parties name off the loan(s), the court will order the home sold. I would recommend you call my colleague Marcy James for any refinance questions you may have.
If your house is upside down, this presents an additional set of problems. Short sale or foreclosure are usually the only remedies. Although the property has no equity, it won’t appraise out for a refinance. You need an experienced family law lawyer help you deal with the potential deficits on the house. And by the way, not every real estate agent is experienced in short sales. If your house is upside down, call my colleague Nicole Stinson for your listing options.
Your house is a major asset that needs to be resolved properly in your divorce or mediation. Don’t let amateurs steer you wrong. For the very best in Santa Clarita Family Law call me, Denise Placencio, at 877-317-8080.