There is no question that divorce or separations are extremely difficult for the individuals going through it. Death of a family member or friend can be very painful as well. I've seen it first-hand with my clients and among friends and family members.
So when real estate is involved, what do you do?
First of all, I must disclose that I'm NOT an attorney, so what I'm sharing is strictly my opinion only and from my own experience in my real estate business.
When it comes to divorce or separation, and the two people involved both own one or more properties together, they both need to have the discussion about whether to keep or sell the properties. That discussion needs to happen first before a real estate agent gets involved -- a real estate transaction can become really messy if the sellers are not on the same page.
Once the two people have agreed to sell, here are 5 things to be clear on:
1) Determine exactly who is on title and how title is held. This can be found on the most recent grant deed. You can get a copy of it at the county recorder's office for a small fee usually. It can also be found through a title company or a real estate agent who has access to such information
2) Determine all relevant loan information, if any. Find out whose name is on the loan, the number of loans on the property, the name of the lender(s), the loan account number(s), the loan balance(s), the monthly payment amount to each lender involved, the type of loan(s) involved, and any other pertinent information. Having the latest loan statement from each lender involved is ideal.
3) Determine if and how to continue the monthly mortgage payments. If you're going to sell your home, it's important to determine whether a short sale will need to be done.
4) Determine the new living arrangements at the present time. Whoever will be living at the property will need to deal with showings of the home alongside the real estate agent. In addition, utility and maintenance payments need to be figured out since it may be necessary for the property to be in as good of showing condition as possible.
5) Determine who you need to help sell the property. If you decide to sell the property on your own (i.e. without a real estate agent), make sure you have the other 4 steps figured out at least. Otherwise, you may find yourselves in a contract with a buyer who may seek monetary damages from you if you're not careful. If you decide to get a qualified real estate agent to assist you, make sure you deal with one who you both can get along with and is respectful of how you want to communicate, particularly since it's not unusual for the two people to sign paperwork and discuss matters separately.
We can probably add several more "to-do's" onto this list, but just these 5 steps alone may take some time to figure out.
As for a death of a family member or a friend, the steps are same to begin with. The difference though is that the decisions will need to be made by the family members or beneficiaries left behind. When there is more than one decision maker involved, the same applies regarding being on the same page when it comes to selling a property.
There are several other items to discuss and consider when it comes to selling a home as a result of separation, divorce, or death. There may be tax consequences to consider. If a short sale is necessary, the legal, financial, and credit implications need to be discussed with you as well. Probate, trust administration, or other legal action may need to be taken regarding the death of a property owner.
If you are going through such difficult times right now, feel free to contact me if you'd like to discuss your situation and get some additional guidance regarding your property. Since everyone's situation is unique, the approach after determining the 4 items above will differ for everyone.
No comments:
Post a Comment