Divorce + Upside Down Residence = Potential for Disaster
Please click this link and check out an article I was invited to co-author with one of our firm’s realtor friends, Dennis Blackmore: http://dennisblackmore.com/2013/11/07/divorce-short-sale/
Complications of Divorce under Virginia law can make real estate transactions more difficult. The article addresses some of the most common pitfalls in completing short sales in Virginia while also dealing with divorce decrees and parties that may be estranged and do not necessarily enjoy working together. Educating yourself to a few of the most important aspects of this “cocktail of consequences” will make it easier to finish the process more quickly and with better credit.
Our firm generally conducts (and charges a modest fee for) a title examination at the outset of being hired by homeowners to help them short sell their real estate. Even if the relationship of a husband and wife is strong, financial hardship, packed away records, and other common conditions that attend short sales can result in “surprises on title”. A proactive title search can give us time to prepare for and minimize the trouble caused by credit card judgments, lines of credit secured against the title, tax liens, grass cutting liens to municipalities, and recently we’ve even had rental properties under condemnation and likely to result in the owners being stung with a “demolition lien” of $10,000 or more. In divorce, we also need to be certain to know whether both spouses are on title, i.e., own the home together and to look at the nuances of the recorded deed of trust to see if both parties are liable under the mortgage obligation.