Finance NEWS

Solution to avoid foreclosure if you are divorce

Published by author on July 24, 2010

Many couples going through divorce proceedings in the midst of the recession may be in a precarious financial situation. This is especially true for those burdened by large amounts of credit card or mortgage debt, plus legal fees and costs. But divorce lawyers in North Carolina Gailor, Wallis & Hunt are offering mortgage options to those who try to avoid foreclosure.

Divorcing couples may consider halting the sale of their home for a few years until the market improves. In this case, a party may live in the main residence and the other chooses to rent an apartment. Once the housing market recovers and the values of improving, the couple may be able to sell the property at a higher price, lawyers suggest.

Consumers may also consider renting their home to continue with the mortgage payments and move into apartments or detached homes. Due to tighter credit restrictions, however, the divorcing couples may have difficulty obtaining financing for the house of another, the lawyers said.

If the couple wants to wash their hands of the house and cut his financial ties, you can also consider a short sale. In negotiating with the lender, the couple may be able to resolve their mortgage obligations by agreeing to pay the difference between what should and the selling price of the home. Under the agreement, which make their needs for new mortgage obligations and other debt reduction.

According to the latest midyear report released by RealtyTrac, the group hopes to see the presentations of over 3 million foreclosures and 1 million bank repossessions by the end of 2010.

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