
17 Jan How To Avoid Foreclosure During a Divorce
Divorce can be an emotional and financial challenge for homeowners, especially with the threat of foreclosure. Suppose you and your ex-spouse share a mortgage. In that case, navigating this situation requires clear communication with each other and professionals who can advise your decisions to guarantee the best outcomes for you individually and collectively. Knowing how to avoid foreclosure during a divorce and protecting your home and credit includes understanding your options and consulting financial professionals and lawyers.
Communicate With Your Lender
The first thing to do is contact your lender, especially if you or your ex-spouse are facing financial uncertainty during a divorce. Communicating with your lender presents opportunities to explain your circumstances and discuss options like temporary payment plans, deferrals, or other avenues the lender might allow or recommend.
Seek Professional Advice
In addition, consult an attorney who can guide you in weighing your options and protecting your finances to comply with the law. For example, couples divorcing in Washington State should know that the court operates under the notion that couples jointly and equally own all assets and debts. Consulting divorce lawyers in Washington State at LaCoste Family Law can provide insights into the following:
- Property divisions
- Repayment structures
- Legal implications surrounding foreclosure
We are a client-focused firm dedicated to helping you get the best outcomes for yourself, your ex-partner, and any children you share. Suppose conversations with your lender reveal that it is financially feasible to maintain your mortgage payments. In that case, we can help you create an agreement to split ongoing costs and meet payment deadlines. That way, one spouse does not have to take on sole financial responsibility that belongs to you both.
Explore Loan Modification
If ongoing payments become unmanageable, a loan modification may make payments more affordable without defaulting. A modification allows you to adjust your loan’s terms by extending the repayment period or reducing monthly costs. To qualify, you may have to provide documentation of the following financial hardships:
- Proof of income loss or reduction
- Missed mortgage payments
- Imminent danger of late payments
Consider Selling the House
Selling the house before foreclosure becomes a reality when avoiding long-term financial and credit damage. Collaborate with your ex-partner to agree on listing terms and division of proceeds after the sale.
If your ex-spouse does not agree to sell the property or the terms for dividing it, a lawyer on our LaCoste Family Law legal team can help. We will defend your legal and financial rights and present your perspective to the court so it may reach a just and equitable decision.
Document every payment, lender communication, and agreement with your ex-spouse regarding the mortgage. Organizing paperwork that provides clarity for all parties and being proactive can help you avoid foreclosure during a divorce and achieve positive legal and financial outcomes.