Foreclosure and Divorce - Dealing With the Law

Foreclosure and Divorce - Dealing With the Law

Foreclosure and divorce do not have to be two very different things. There can be a way to make these two situations work for e…

One of the first steps to working out a foreclosure and divorce settlement is to talk with one another about how the situation has affected both of you and your finances. But it's even more difficult and even more onerous when the other spouse facing foreclosure is also undergoing a divorce. Add the ex-spouse to the mix, and suddenly the two individuals face two separate lawsuits, albeit stressful to many individuals, who usually never become involved in legal litigation. If you and your ex-spouse can agree on terms for the divorce settlement, then it will be much more manageable.

In addition to the fact that there isn't any judgment against one party, some assets aren't being garnished by the lender. By involving one another in negotiations for the foreclosure and divorce settlement, the two individuals can ensure that their children receive everything in their name that's owed.

The foreclosure and divorce settlement can work for the divorcing couple if one spouse doesn't want to pursue the settlement and would rather keep the house. If this happens, the ex-spouse can't be forced to sell it unless it's determined that a judge has ordered a sale. If this is the case, the two parties should talk and see if it's possible to develop a solution that satisfies both parties.

Another way that divorcing couples who face foreclosure and divorce can work together is by coming up with an arrangement where one spouse won't have to come up with all of the money toward the mortgage. This arrangement may be accomplished by having the spouse who isn't facing foreclosure sell the other spouse's house.