We got a call from an angry soon to be divorced seller....and oh boy...was he going to punish his soon to be ex-wife....the lender would sweep through the house he no longer lived in and throw this soon to be ex-wife on the street. His voice was raised and angry...of course, this financial situation must be all HER fault and the foreclosure would leave her homeless...and after all, that is certainly what she deserved. I am sure his soon to be ex has another version of this story.....or she wouldn't be an ex.
Wisconsin...as with many other states...is a marital property state...the house that is now upside down....is Upside down on BOTH CREDIT REPORTS....no matter where one spouse wants to lay blame..how much delight one would take in having the other "evicted by foreclosure" as with most less than good thoughts.....it is going to bite you both...divorcing sellers, A short sale will ding both credit scores...there is no getting around that obstacle. A foreclosure...hmmm let's see...well there is garnishment to BOTH spouses pay checks....there is the foreclosure that will appear on BOTH credit reports for years and years after the foreclosure...there is the increase BOTH are likely to pay in insurance...if either changes jobs or employers review credit it may affect their careers.
A short sale may or may not be a possible remedy....what we do know is that foreclosure is not a one way street....not a weapon for punishing ex spouses....it is something that should be avoided at all costs....Call us now...no matter where you live, we can refer you to a local expert to evaluate your situation and if a short sale is the best remedy....Toll FREE: 877-525-0563 or locally: 414-525-0563..the credit you save WILL be your own. We don't just list short sales, we close them.
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
Dealing with divorcing couples can be quite difficult because there are so many additional emotions involved that don't have a thing to do with the property. Maybe one solution would be to have two agents co-list so that each party has an agent to deal with that is "theirs" to vent to. Most often that is just what most people need before they can discuss something with reason.
That's why it works well for us Silvia..My husband deals with the husband and I deal with the wife...everyone is comfortable and things go very well..
It should also be noted that Fannie Mae will soon begin distinguishing between a pre-foreclosure sale, a short sale and a foreclosure when it comes to qualifying for a new purchase. Doing the right thing vs. letting it slip into foreclosure will mean it now takes you 3 years longer to qualify for a conventional loan!
Too many folks still think they can get THEIR price....and unfortunately....TOO many realtors...still BUY listings !