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Buy MI House > Blog > 2019 > April

What to Do with House When Divorced

One of the questions that people often ask when going through a divorce is, “what do we do with the house?”. A house is typically the largest asset that couples going through a divorce share. It’s also probable that there are a lot of emotional attachments to the home. People who have children know that the kids have probably spent a lot of time in the house, and that can also make things tough.

Figuring out what to do with the house during a divorce is one of the leading causes of disagreement between divorced couples. The house has monetary and emotional value, and that complicates things. It’s easy to agree on how to divvy up most items. The house, however, is something that’s a bit more complex. However, there are ways that you can address this issue.

Usually, both parties will meet with their respective attorneys and come to an agreement about what to do with the house when going through a divorce.

Buyout the House When Going Through a Divorce

What to Do with House When Divorced

Depending on the state that you live in, you might be able to negotiate a divorce home equity buyout. In this situation, one spouse agrees to buy out the other’s equity in the property and then keeps the property as their primary residence. This can become complicated if both parties can’t come to a mutually beneficial agreement. In some cases, it’s easiest just to let the attorneys figure out what the best deal is for both parties. Still, there must be an agreement.

In any event, the buyout option can become a lengthy process. Usually, both parties will higher their own assessors to determine the value of the property. As you can imagine, the assessors don’t always agree on their respective evaluations. Typically, The amount of equity in the home will vary depending on several factors. For instance, how much the home was worth when the coupled initially bought, how long they’ve had it, and what it’s worth presently. In some instances, both parties might’ve purchased the house together and both of their names may be on the title. If that’s the case, then one person can buyout the other’s equity in the property.

Continue to Share Ownership of the House After Divorce

During a divorce, if the house is in both names, then a couple can share ownership of it. With the help of their attorneys, a divorced couple can agree to continue to co-own the property. Further, the parties can agree on whether they want the agreement to be short-term or indefinite. In essense, the two parties are making a business agreement when they choose to co-own a house after divorce.

After the Divorce, One Party Lives in the House and Takes over the Mortgage

In some cases, one party might choose to keep the house and refinance the mortgage. Generally, this is a good strategy for preserving the children’s’ stability and prevents them from needing to move to a new residence. In these cases, the spouse who remains in the home after the divorce may have the option of refinancing their mortgage. However, that spouse would have to meet certain criteria. For instance:

  • They’d have to be current on their mortgage payments
  • The spouse who chooses to remain in the home would have to be able to afford the new loan payments
  • That same spouse would have to have strong enough credit to meet the requirements for refinancing
  • The other spouse has to agree to let go of the house

It’s not uncommon for the spouse who wants to remain in the home to fail to meet one or more of these criteria.

Continue to Share the Mortgage on the Home After Divorce

In some instances, couples who divorce choose to share the mortgage of the home after a divorce. The obvious downside to this arrangement is that one person can decide to stop making payments on the mortgage. When this happens, it can cause the house to go into foreclosure, and it can ruin the credit of both parties.

However, if both parties agree that this is the best course of action for the sake of the kids, then usually this arrangement will work out. It’s worth noting that this strategy requires both of the people getting divorced to remain in communication and rely on each other. Some people don’t like that or find it too risky. It can also complicate things if either of the parties decides they want to invest in a new home. If both parties are still paying off the mortgage, then it may impede one’s ability to qualify for another mortgage.

During Divorce Sell the House and Split the Proceeds

What to Do with House When Divorced

Occasionally, neither party will want to keep the house. Other times, the two parties can’t reach a mutually beneficial agreement on what to do with the house after the divorce. In these cases, the best option might be to sell the house and split any profits. Agreeing on how to sell the house during a divorce can be difficult. To make things easier, some investors will buy a house for cash. It’s a very quick and easy process. The investor will appraise the house and then make an offer. Once everyone’s agreed on an offer, the investor will offer a cash amount and you can close the on the house quickly. The divorced couple can then use that cash to pay off the remaining balance on the mortgage and then split the remainder. This is the easiest way

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Sell Parents' House Siblings

People often look to sell their parents’ homes to siblings when their parents reach an age where they can no longer manage their own assets. Selling your parents’ house to a sibling often seems much easier than going through a real estate agent. However, you should be aware of the challenges that come with selling your parents’ house to a sibling.

Selling Your Parents House

Usually, when people become elderly or reach a certain age, they’ll leave one of their children in charge of their assets. If your parents have given you the responsibility of managing their assets, and you want to keep your parents’ home in the family, then you may want to sell your parents’ house to a sibling. Selling to a sibling is one of the quickest and easiest ways to sell your parents’ house, but it does come with some difficulties.

Challenges When Selling Your Parents’ House to a Sibling

A common problem that you could run into when considering selling your parents’ house to a sibling is the financial status of your sibling. You have the responsibility of selling the house, and if your sibling can’t afford it, you’ll have to tell them no. Telling a sibling no can be difficult, but you have to do what’s best for your family.

This issue can be accentuated when siblings don’t understand that you need to sell your parents’ house to pay for care. Paying for the care and well-being of your elderly parents can be expensive. Therefore, you may need to sell their home for a significant amount of cash. If your siblings can’t afford it, that could be a problem.

Another problem that people run into when trying to sell their parents’ house to a sibling, is deciding which sibling to sell to. If you have multiple siblings, it may seem unfair to sell the house to one and not the other. This predicament could lead to internal arguments or family difficulties.

If you want to avoid this issue altogether, you should consider putting your parents’ house on the market. This is the fastest way to sell your parents’ house and it allows you to avoid the drama that comes with selling to siblings.

For Sale By Owner

Sell Parents' House Sibling

If you’ve decided that you don’t want to sell your parents’ house to a sibling, the next thing you may consider is the for sale by owner option. Many people choose to go this route because it allows you to avoid the hassle of dealing with a real estate agent, and you keep more of the profit. However, without proper marketing, it may take longer for the house to sell.

For sale by owner sales can be difficult because it requires a lot of responsibility on behalf of the seller. First, you have to do a lot of market research to determine what the best price to list parents’ house is and then there’s another slew of problems.

Once you’ve determined what price you’re going to list the house at, you have to decide where you’re going to list it. You could, for instance, list it on the internet. But you’ll have to do some research to figure out how to get the most exposure.

Further, if you’re selling your parents’ house by yourself, it can become really time-consuming. If you aren’t going to sell your parents’ house to your siblings, they may not be willing to help you out.

Another thing to consider is potential repairs. It’s not uncommon for seniors to have problems with their homes because they can’t manage maintenance at their age. If a prospective buyer wants to have the home inspected and the house doesn’t pass inspection, you’ll be responsible for paying for repairs. Repairs can be time consuming and costly, which defeats the purpose of selling the home yourself.

At this point, you may have decided that it doesn’t make sense to sell your parents’ house to siblings, and the for sale by owner option doesn’t seem any better. You might be considering the traditional route of going through a real estate agent. However, that isn’t necessarily any easier or less time-consuming.

While all this may sound discouraging, there is still one great option that will allow you to sell your parents’ house fast and easily.

Sell House for Cash

Sell PArents' House

Up to this point, you’ve determined that selling your parents’ house to a sibling won’t work, and for sale by owner isn’t a great option either. The quickest and easiest way to sell your parents house, is to sell it to a cash buyer.

The fastest and easiest way to get cash for your parents’ house is to sell to a cash buyer. Many trustworthy investors can get your parents the funds that they need quickly and easily. Those funds can then go towards any care or special accommodations that they might need.

Cash buyers don’t require you to make any repairs on the house. Further, selling to a cash buyer allows you to save time and money on advertising. Selling to a cash buyer will enable you to get the house off of your hands and to focus on what’s important- your parents and their needs.

You’ll have cash in hand to get them settled in a new environment. Also, you’ll be able to avoid realtors. You can even avoid having people walk through the house for showings. This is a bonus because seniors usually don’t like having strangers in the house. If you want cash quickly and without the hassle, this is the best option.

Best of all, you won’t have to make a decision between siblings. The sell house for cash option is a great alternative for selling your parents house.

Sell Your Parents House for Cash Today

There’s no need to stress about how to sell your parents’ house. Don’t worry about selling it to your siblings if that’s stressful. Don’t fret over a for sale by owner strategy either. If you want to sell it today, there’s an easy way to do that. At Buymi.house, we specialize in closing on houses quickly. We know that you have more important things to worry about. We want you to be able to focus on those things instead of stressing about your house.

Do you have a question about the house selling process? Do you want to get a cash offer on your home? Even if you don’t decide to sell, we’d love to answer any questions you might have. Give us a call today at (586) 200- 1710.

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Foreclosure

Your house is nearing foreclosure. Owning a home can be difficult. It comes with a lot of financial responsibility. Inevitably, life happens, and when it does, it can be challenging to meet those financial responsibilities. Failing to do so can lead to foreclosure, and that’s a painful reality for many homeowners.

What Leads to Foreclosure?

The apparent reasoning for foreclosures is that people run into financial problems. However, a variety of circumstances can lead to those financial problems, and we’ll look at some of those reasons in this section.

Changes in Health Can Lead to Foreclosure

Often, people who foreclose on their homes do so because of health issues. If you have an unexpected illness or injury that prevents you from being able to work, that can impede your ability to satisfy your financial responsibilities. Further, many people incur medical expenses that wipe out their savings and prevent them from being able to fulfill their financial obligations.

A Change in Relationships Can Lead to Foreclosed Homes

Sometimes, a couple may go through a divorce which could lead to a dispute over who’s going to assume responsibility for the mortgage payments on a house. If this dispute goes unresolved, that can lead to the house going into foreclosure. Also, people sometimes have roommates who decide to move out which can result in the same situation.

Over Extended Finances Can Lead to Foreclosure

foreclosed

Often, people get caught up with buying the house of their dreams, but they don’t consider the cost of ownership. Renovations, maintenance, and property taxes are all expenses that come with home ownership. These costs can add up quickly, and if you aren’t prepared, this can lead to a default on payments, and ultimately, foreclosure.

Options for Stopping Forclosure

When you’re facing foreclosure for any of the reasons mentioned above, it can feel like the end of the world. However, you have options that you can utilize to try and solve the problem.

For instance, your lender is also not happy about your foreclosure. Foreclosure procedures are a hassle for them, and they’d prefer to find a solution. They may even offer to help you out.

In some cases, the lender may offer a compromise. Some lenders will provide you with a grace period to help you out which may be ideal if your financial troubles are temporary.

Another option to consider is a short sale. From a financial aspect, it may be beneficial for you to sell your house yourself. A lot of people choose to do this because you’ll get a better price selling it yourself than you would at an auction. Many times the lender will appreciate this route because it saves them time and relieves them of the hassle of a foreclosure procedure.

Yet another option is filing for bankruptcy. Again, it’s worth noting that bankruptcy is only a short-term fix. If your financial situation is temporary, then this might be a fine option. The bank trustee will work out a payment schedule which will allow you to get caught up on your mortgage.

Selling Your House to a Cash Buyer

Cash buyer

The quickest and easiest way to get the house off of your hands is to find an investor who buys houses for cash. Selling your home to a cash buyer won’t guarantee you the most revenue. However, you can rid yourself of your mortgage, and avoid foreclosure. Below, I’ll list some of the benefits of selling you house to a cash buyer.

  • You won’t have to pay realtor fees associated with a quick sale.
  • You’ll avoid having to negotiate with the mortgage lender.
  • You can avoid bankruptcy.
  • Best of all, you can avoid foreclosure.

If you don’t see your financial situation turning around in the near future, finding a cash buyer is your best option. The process is quick and easy, and it’ll help you avoid foreclosure.

Do You Want to Stop Your Foreclosure?

We understand that facing foreclosure is both stressful and frightening. That’s why we’re here to answer any questions you might have about the foreclosure process or how to get out of it. At BuyMi.House, we’re here to help you. Whether you’re ready to sell or you just have a question, Give us a call at (586) 200-1710. We’re here to help make the process as easy as possible for you.

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