Creating a Separation Agreement with Mortgage Buyout Terms can be very difficult to negotiate. Lately, we’ve talked to several people who are going through a divorce – or are at least telling us that they WANT DESPERATELY to get out of a marriage.
Their real estate is holding them back.
I guess it’s not surprising that folks with money issues are also having marriage issues – but there are important details they need to consider:
- Who is on the Deed and who is on the note?
- Is there an escrow? If not – who has the insurance policy? Are the taxes current?
- If the separation agreement calls for one spouse to “buy out” the other spouse – are they qualified to do that?
One of our recent encounters had a guy with 6 jobs in the last 2 years trying to cash out refinance so he could “buy” his wife out. They had over $50K in credit card debt, and a house that was being reduced by 7% every month per the separation agreement.
He’s a contract employee who goes from job to job. Granted, he has the next 5 months of contracts worked out – but he’s a contract employee. He has mid 600 credit scores. He has no cash reserves. The house payment is currently 60 days past due. His child support is $3000 a month.
Writing a Separation Agreement with Mortgage Buyout Terms that are STUPID… and that can not be met is not going to do ANYONE any good!
“Why would you risk foreclosure as you wait for the house to be reduced to the “right” price?,” I asked. “Why not price the house correctly the first time?” Because they can’t talk to each other.
If you are in / or considering a divorce – please be certain that you follow these basic steps to protect your credit and your assets:
- Obtain a copy of your credit report. Monitor it.
- Close all joint accounts
- Find a real estate agent to represent the sale of the property
- Be realistic about the repairs that need to be done and the staging required. This is the best time to clean, declutter, depersonalize and pack.
- LISTEN to your agent. Listen to your counsel. BE REALISTIC so that you can have move on with your life!
Please contact us for information about Divorce and refinancing your home. Steve and Eleanor Thorne, 919-649-5058 – Mortgage Loan experts in Cary, NC – or leave us a question about Separation Agreement with Mortgage Buyout Terms, I try and answer them all