In today’s economy, many couples are forced to consider a “short sale” with regard to their home. This is especially true when the parties are facing separation and/or divorce. The financial strain of divorce on the family unit creates a situation in which the mortgage or mortgages simply cannot be paid.
If you are in this situation, be sure to consult with your divorce lawyer or a real estate lawyer for advice. If you cooperate with the bank in short selling the property, it is important to try to negotiate terms that prevent the bank from seeking an excess judgment Without negotiating these terms, the bank will potentially sue you personally for the difference between what is owed on the property and what the bank collects on the short sale.
Many banks would prefer that you cooperate so that they do not have to file a foreclosure action. With your cooperation, the bank may agree to accept the property proceeds as full payment of the mortgage balance.
If you are facing a divorce or separation from your spouse and need legal advice, please contact The Law Offices of Wade P. Luther, P.A. at (407) 835-9900, or visit the firm at: