Divorce tends to get complicated, and many times jointly owned property can be a headache. Matters get even more difficult when the debts against the home exceed the homes value, and a traditional sale is just not possible.
During the divorce the ex wife had moved out and signed a quit claim deed leaving her ownership interest to her former husband.
Unfortunately, this did nothing to relieve her of responsibility for the jointly held mortgage - a fact that is often overlooked in divorce situations. Several months later when he was unable to keep up with the mortgage payments, they were both behind on the payments and facing foreclosure.
With over $70,000 of negative equity and no way to cover the loss, they decided a short sale was the only way to sell the property and move on.
We listed the home and a buyer was secured. Carrington can be challenging to work with and frequently takes their time processing FHA short sales. Complicating this short sale was a partial claim from a failed loan modification attempt.
It took a few months for the stars to align, but our short sale was finally approved! We closed shortly after, with our very relieved sellers finally moving on debt free from their headache home, and with $3,000 in relocation assistance!
Last Updated on April 26, 2019 by Minna Reid