Your matrimonial home is likely your most significant investment. Hence, you should be ready to deal with the financial reality of managing it during the division of assets in your divorce.
Here’s how to handle it in the best way in Houston, Texas.
In a divorce, splitting real estate isn’t as easy as splitting bank accounts, debts and even shared frequent flier miles.
You may face the following challenges.
Your matrimonial property may face pre-foreclosure or foreclosure in case of disagreements on who should make the remaining mortgage payments. It becomes a problem if the spouse who gets the house didn’t assume or refinance the mortgage that was initially taken by both spouses, and the other spouse stops paying it. In this case, lenders can initiate foreclosure against both spouses.
In some instances, your ex-partner may refuse to sell the house. This may be due to his/ her personal reasons. Or you may disagree on how to divide the real estate in a divorce. If the disagreement isn’t resolved, one partner can take the other to court to compel that spouse to sell. The court can also force a sale of the house if spouses can’t come to an agreement and the process takes too much time.
If you bought the house together and your ex-partner gets it, he/she must assume or refinance the mortgage. In case that isn’t done, your credit can suffer if mortgage payments are delayed. That’s because your name remains on the deed.
You’re sure to be dealing with multiple issues during your divorce. Hence, you need a convenient way of selling the family home. In this regard, the easiest option is a real estate investor.
A real estate investor helps you liquidate your home quickly.
An investor is quite different from most home buyers. The investor isn’t planning on living in the house, unlike most buyers who are looking for a place to make their home. This means the investor won’t have stringent requirements on the specific condition of your home.
The investor isn’t concerned with such things as the kitchen having a vibrant backsplash or new toilets.
In fact, many investors look for old and outdated homes which they can fix up to re-sell. Hence, you’ll have a much easier time selling to a real estate investor rather than most home buyers.
Besides, negotiations for your property work differently with investors.
Unlike most buyers who gauge the value of a house based on modern features and classy renovations, the investor doesn’t do that.
The duration within which you can get paid is also a critical factor.
If selling to regular buyers who require a mortgage to buy your house, the process can take between 3 and 6 months. The mortgage isn’t assured either. Buyers applying for a mortgage may not succeed in getting it. Even if the buyer is preapproved for a loan, lenders can decline to issue funds if the buyer’s credit-worthiness changes.
You certainly don’t have to contend with such uncertainties when selling to a real estate investor who buys homes for cash.
Cash for Houses Houston TX is the best company you can depend on to buy your matrimonial house in Houston, Texas, and its surrounding areas.
We are a reliable real estate investor company that has served many other couples in similar divorce circumstances. You can expect a fast and stress-free process from start to finish.
Through our service, you can expect a quick sale of your house within 3-30 days. Right after getting an obligation-free cash offer, you can expect to get cash for your home within days.
You can sell your marital home as is, even if it requires costly repairs. You don’t need to perform any renovation on it, which will take time and money that you need urgently.
As soon as the paperwork is finalized and signed by both sides, you’ll get a cash payment for your house. Getting quick cash saves you from the lengthy process of waiting for payment from buyers who apply for mortgages.
We handle all paperwork directly related to selling your property. This also involves any problems related to selling the home, such as negotiating with your ex-spouse and creditors to settle debts.
If facing foreclosure on your property while divorcing, you can use the following two options to prevent it:
With a short sale, your home is sold for less than the value of the mortgage owed. In this situation, the divorced couple must qualify for the short sale (even if it’s your ex who let the house go into foreclosure). This applies if both of you were in the mortgage, even if you have a divorce decree or the house was deeded to one ex-spouse.
In case the lender doesn’t approve a short sale, you and your ex-partner can file a petition for Chapter 13 bankruptcy. The court will issue a stay against foreclosure in progress. It will give you fifteen days to submit a repayment plan, and can even affect the property settlement agreement.
Selling the marital house as a couple before a divorce, you can benefit from an exemption from the capital gains tax of $500,000. This involves several requirements like not having used the exclusion in the past two years.
To get tax exemption after a divorce, the spouse who stays in the house can grant the other use of it under a divorce or separation instrument. This way, each person will get a $250,000 tax exemption when selling the property.
Also, you won’t pay taxes on gains or losses in a buyout (one partner buys out the other’s share of the marital house). Similarly, you won’t owe any income tax in case the rental property is transferred from one spouse to the other.
Such tax exemption doesn’t apply when selling a vacation or second house.
In Houston, Texas, consent of both spouses is required to sell the house if it’s jointly owned as community property after divorce. It would qualify as community property if it were bought during the marriage, regardless of whether only one ex-spouse is on the deed.
The same applies even in cases where the property was bought before marriage, but the other spouse significantly contributed to:
· paying the mortgage
· paying taxes
· catering to maintenance costs
In such cases, a quitclaim deed is required from the ex-spouse, for the house to be fully transferred to other ex-spouse. A quitclaim deed is also required if both spouses are listed on the deed, yet the mortgage is in one of the spouse’s name.
An ex can force the sale of a matrimonial home in the following instances:
You can file a partition lawsuit for any reason. However, it’s costly, and there’s no guarantee the court will confirm it.
It may be necessary in case of a stalemate with your ex. A court-ordered sale will occur without consent if neither you nor your ex can afford a buyout or refinancing. In such a situation, the way to share the property is to sell it.
If your name is indicated on the mortgage of a property that your ex owns, delays in payments by your ex will affect your credit. That means any foreclosure after the divorce will affect you. In such a joint mortgage situation, the court can order the sale of the house upon your request.
If you get the matrimonial house, you must assume or refinance the mortgage in your name only. The same also applies if your ex gets the home.
However, your ex-spouse may refuse to comply, contravening the terms of your divorce property settlement or divorce decree’s equitable distribution order. Hence, you can petition the court to enforce implementation of the equitable distribution order to get your ex to assume the loan and get your name off the mortgage. However, in the worst cases where the ex-spouse cannot or refuses to refinance the mortgage, the court can order the sale of the house.