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Author: Hometown Development

What to Know About Michigan Property Tax Foreclosure

Posted on by Hometown Development

Foreclosure is a scary word. What does it mean? What can be done to stop it? Here’s everything you need to know about Michigan Property Tax Foreclosure.

What does property tax foreclosure mean?

If you don’t pay the real property taxes on your home, you will eventually lose your home, in other words, it will be foreclosed. Fortunately, in Michigan, the property tax foreclosure process takes about three years.

If property taxes are not paid by March 1st, the property is considered in delinquency. Taxes can still be paid, but late fees may apply. After the second year, the property is forfeited to the county treasurer and the foreclosure process begins. This does not mean you have lost your home.

The next year is referred to as the redemption period. During this period you have about one year to pay back the taxes owed on the property. If the taxes are still not paid as of March 31st of the third year, the county treasurer will take ownership of the property and can put it up for sale. At this time the property is fully foreclosed and tenants must vacate the premises.

How long do I have before I lose my home?

The entire property tax foreclosure process in Michigan takes about three years. If you have received a notice of forfeiture, you still have a year to pay your taxes to keep your home. If you are able to do this, the foreclosure process will be stopped. However, if you are unable to pay back your property taxes, at the end of the process it is likely your home will be foreclosed.

What can I do to stop the foreclosure?

Once your home is in the foreclosure process, you have a few options. The first is to pay what is owed on your home, plus a little in interest and fees. You may be eligible for reduced or deferred taxes if you are elderly, disabled or meet specific income requirements. If so, you must apply for deferment using an application and submit it to your county treasurer by the deadline.

If you are not able to pay the full amount of property tax you may be able to reduce the amount of taxes owed. Property taxes are based on your home’s estimated value. If you can contest the reduced market value of your home, you may have to pay less tax.

Finally, if you are still unable to afford the Michigan property tax and avoid foreclosure, you may wish to sell your home. This option enables you to be rid of the debt and move on with your life in a new home you can more securely afford.

How do I sell my home?

When it comes to selling your home you can either sell it yourself or sell it via a reputable real estate investor. Let’s explore what that means for you:

Sell it Yourself

Selling your home yourself means you solely are responsible for preparing your home for sale, marketing it to prospective buyers, and following through with any inspections or closing processes after an offer is accepted. This process can take anywhere from 6 months to a few years, depending on how many changes you must make to the property to prepare it for selling, and how long it takes to find a buyer. Even after doing this, inspections and the closing process may delay the final sale by weeks or months.

If you are keen to DIY and have a knack for navigating the fluctuating housing market, you may feel comfortable selling your home on your own. If, however, you are facing a tax delinquent foreclosure, and you don’t have much time to pay back those property taxes, it’s a good idea to seek the help of a real estate investor to move the process along quickly.

Sell to a Michigan Real Estate Investor

Selling your home to a real estate investor has many advantages. They will help you out of your back taxes right away, so you don’t have to worry about the government knocking on your door.

A real estate investor will give you a fair price for your home, something that isn’t guaranteed if you try to attract a buyer on your own. They will work with your timeline and you won’t have to worry about making changes to your house to get it ready to sell. For many homeowners, this process is a simple and stress-free way to get on with your life and out from under the weight of your debt. 

Whatever route you decide to take, there are resources to help you. Here at Hometown Development, we know the Michigan property tax foreclosure process can be long and confusing. If you have questions about a home in the property tax foreclosure process, or to sell your home before it’s foreclosed on, give us a call at 616-379-3090 or contact us online today to discuss your options.

How Long Does an As-Is Home Sale Take?

Posted on by Hometown Development

If you want to sell a home quickly for whatever reason, be it divorce, death of a family member, or foreclosure, you may have heard that selling for cash, as-is is the fastest way to do that. But just how soon can you expect to be out of your house, money in hand, and onto the next thing? How long does an as-is home sale take?

How Long Does a Traditional Home Sale Take?

Before we tell you what you really want to know, first, some context. You’re really going to appreciate what you read next about how long it takes to sell a home as-is once you know what the alternative is. And it isn’t pretty. According to Zillow, most homes stayed on the market for an average of 68 days. So, just over two months. If you need cash now, that’s not great, but that figure is even more concerning when you figure in a couple of things: that is the average, meaning that some homes were on the market for much, much longer than 68 days and that “on the market” means just that, listed for sale. 

 

Some of these homes were on the market but were taken off, even though they didn’t sell. The sellers might have changed their minds about selling, or simply have gotten discouraged and given up. After a few months or even years of waiting for a home to sell, the buyers may have even decided to sell as-is.

How Long Does an As-Is Home Sale Take?

You can sell a home as-is in as little as five days. That’s right, five days. What’s the difference between that and a traditional sale? Just over two months. 

 

While obviously every case is slightly different, selling as-is really can happen quickly in the span of just a week or two, as opposed to months. This is because the lengthy process of listing the home, doing showings, considering offers, and inspections is virtually cut out of the equation. 

 

When you sell-as is, generally speaking, the buyer will appraise and inspect the house themselves or through an agent, and use that information to make an offer. The middlemen of realtors are cut out, and there’s no long approval process for the buyer to get financing for a mortgage. 

 

If you are hoping to sell your home quickly, as-is or for cash, consider talking to the team at Hometown Development. A local real estate investment firm, we purchase properties in cash, and we can help you close in as little as 5 days. For more information about our process, give us a call at 616-379-3090 or contact us online today.

Can I Sell A House that Needs Repairs?

Posted on by Hometown Development

It’s a tough situation: you need to sell your house, but it’s not in good shape. Maybe you haven’t been able to keep up on repairs since you’ve gotten older, or maybe you simply don’t have the money to fix the problems that have been cropping up. But you know that no one wants to buy a new home with problems… right? If you’ve been asking “Can I sell a house that needs repairs?” here are your options.

Repair the Home 

If your home needs repairs and you want to sell your home in the traditional way, through a realtor, you may choose to make those repairs. Depending on the cost and extent of the repairs, you may be able to do this yourself or have to hire a contractor. Replacing an old water heater or countertops might not be too big of a repair to have done yourself before a sale, but replacing the whole roof might be another story.

 

While traditional sale of your home might result in the greatest price for your home, doing the necessary repairs can have some downsides. If the repairs are extensive, you may be out a lot of money, which you may or may not recoup in the sale. Also, these repairs can take a lot of time, which you may not have to wait.

Sell the House As-Is

Selling a home as-is is exactly what it sounds like: you sell the home in the condition it’s in, regardless of any issues or repairs needed. While you might not get the same price you would if your house was in perfect condition, you don’t have to worry about the expense and time of making repairs yourself. If you need to get out of your house ASAP, for instance, in a foreclosure or divorce, you may not have the time or funds to complete a repair.

 

Selling as-is means that the buyer accepts whatever issues the home has and will pay for the repairs themselves. If this buyer is a real estate investor or house flipper, they likely have the resources to complete these repairs for less than it would cost an average homeowner, meaning that they might even pay more for your house than you would have gotten in a traditional sale, after you subtract your expenses for the repairs. 

 

Plus, selling as-is expedites the sale process. Since the buyer is accepting that there are issues with the house, there aren’t the same kinds of inspections and evaluations that happen with a traditional sale. Additionally, these buyers are motivated to close sales quickly, so that they can flip the house and start making money themselves.

 

Hometown Development purchases properties in any condition. It doesn’t matter what repairs your home needs if you’re looking to move on, we can help you. Contact us today online, or by phone at 616-379-3090, for more information about your cash offer. 

I Need to Sell My Home Fast — What Are My Options?

Posted on by Hometown Development

There are many reasons you may want to sell your house quickly. Whether you’re facing foreclosure, getting divorced, are moving for work, or simply need money, selling your home as fast as possible is crucial. But selling quickly can be hard to do. If you need to sell your home fast, here are your options.

Traditional Sale Isn’t the Best Option

It might have been a while since you bought your home, but if you think back to that process, you’ll remember that it wasn’t a quick one. The traditional sales process for homes moves at a glacial pace. First, you need to find a realtor, who lists your home for sale. Then your house could sit on the market for months—even years—before someone is interested enough to make an offer. Plus, once an offer is made on the house that you accept, there’s still a lengthy process of inspections and permits and signing documents before closing.  

 

Additionally, another component of a traditional sale is making the home as appealing to potential buyers as possible so that you can get the best price for it. This can often include making updates and upgrades from minor things like buying new appliances and cosmetic changes like a new coat of paint to more extensive renovations. Those changes take time and money, for little to no guarantee of success in selling the home or fetching a high price.

Sell As-Is

As we mentioned in the last section, sometimes homeowners will make changes and renovations to their homes in order to make them more saleable. But, this takes money and time, and you don’t want to spend either when you’re looking to sell quickly. Selling the home as-is is a way to avoid the delay and hassle of updates and remodeling.

 

This also cuts down on the negotiation side of selling a home, which itself can lengthen the process. If it’s clear that you’re selling the home as-is, you won’t have to bicker with buyers who will only give you your asking price if you replace all the appliances or put in a new water heater.

Sell for Cash

The whole process of getting approved for a mortgage is another lengthy part of the traditional sale cycle that you can and should avoid if you need to sell your house right now, today, ASAP. Selling for cash is the way to do this. No financing approvals that take weeks and months, no hassle in getting your money right away.

Sell to Real Estate Investors

If you sell to real estate investors, instead of a traditional sale to future resident homeowners, you’re going to shave a lot of time off the home sale process. This is in part because investors have the capital and resources to enable the options we mentioned previously: buying for cash and buying as is. Plus, real estate investors and developers also are motivated to speed up the sale process. The sooner the purchase is completed, the sooner they can start making money off the home and property.

 

If you’re moving out of town, facing foreclosure, or simply just need to sell your home quickly, the team at Hometown Development can help. We purchase properties in any condition, for cash, which means we can close in as little as 5 days. For more information, or to start the process of selling your home fast, give us a call at 616-379-3090 or contact us online today. 

5 Signs You Can Trust A Cash Offer For Your Home

Posted on by Hometown Development

Selling a Michigan house for cash isn’t the traditional or typical route, so naturally, people are concerned about the risks. After all, when you do a traditional home sale, you don’t have to vet the offers—the bank takes care of that for you. If the prospective buyer isn’t credible or has bad credit, the bank will simply deny them financing. But selling your house for cash isn’t an insane risk, it’s often your best option if you want to sell quickly. Here are 5 signs you can trust a company or individual making a cash offer for your home.

1. The cash offer makes sense

Everyone would love to double their money when they sell their house, but that just isn’t the reality most of the time, especially if the market has faced downturns, your home is in disrepair, or you need to sell very quickly. Given the condition and the appraised market value of your home or property, an offer that is in that ballpark is more likely to be legitimate.

2. The real estate investment firm is legitimate

There are a lot of shady real estate investment operations out there, scamming people out of their money. Make sure that the company you’re dealing with has a solid reputation in your community and in the industry. Look into their investors, their past projects, and their online presence and ratings to get a sense for their legitimacy.

3. The investment firm has glowing reviews and testimonials

People aren’t going to write good reviews of a company who nickel-ed-and-dimed them or otherwise took advantage of them in the sale of their house. So, if their reviews are stellar—and not just on their website, but on other platforms like Google, etc.—you can have more confidence that you’ll be well-treated, too. 

4. The real estate investment company is local

A local company is always your best option for selling for cash, as they can provide you with a better and more accurate appraisal of your home’s value, as they can send their personnel out to your home, rather than subcontracting the appraisal to a third party or not performing an in-person appraisal at all.

5. The offer is for the home as-is

If the company purchasing your house is asking you to make a bunch of changes and updates to the home before they come through with the price they offered, that might be a sign to step away. Renovating the home will take time and cost you money, during which time the deal could fall through. Legitimate real estate investors and purchasers will make you an offer for your home based on what it’s worth now, not what it would be worth if you replaced all the appliances and put in new countertops.

Signs You Shouldn’t Trust a Cash Offer

If you receive a cash offer for your house or property, here are a few signs to look out for that indicate that something fishy is going on:

  • The investor doesn’t have a website.
  • It’s difficult to get in touch with your point of contact
  • The offer is extremely high or too good to be true
  • The real estate investor only contacts you via email or digital means, or won’t meet in person 
  • The investor has never appraised or inspected the house

If you’re looking for a cash offer for your home that you can trust, call Hometown Development. We’re a local real estate investment firm with a mission to responsibly buy houses here in West Michigan. For more information about our process, or to get in touch about a cash offer for your home, please give our office a call at 616-379-3090 or leave us a message online, and we’ll get back to you as soon as possible. 

Can I Sell A Home In Pre-Foreclosure?

Posted on by Hometown Development

Foreclosure is a scary word, especially if crushing mortgage payments after an accident, illness, divorce, or another tragedy have rocked you and left your finances unstable. If you’re worried about being able to pay your mortgage and the possibility of foreclosure, here’s what you need to know about selling a home in pre-foreclosure and how to sell your house before the foreclosure happens.

Can I sell a home in pre-foreclosure?

Yes! If you’re facing foreclosure, you have the opportunity to sell your home up until the home is sold at auction in a Sheriff’s Sale by the mortgage lender. 

A home will be foreclosed upon when a mortgage lender exercises its right to sell a property which the owner has not kept up payments on. The lender gives the homeowner a period of time to make payments or other arrangements before selling the property.

The lender will then auction the property in a Sheriff’s Sale. The notice of the Sheriff’s Sale must be published for four weeks before the auction, during which time the homeowner can sell the property, refinance the property, make all outstanding payments on the property, negotiate a loan modification with the lender, or file bankruptcy.

 

When is it too late to sell my home during the foreclosure process?

After a foreclosed home is sold by the mortgage lender at auction, the homeowner has a redemption period (typically between six months and a year) to pay the lender in full to retain ownership of the home. So, after the Sheriff’s Sale, unless you pay the mortgage lender all that you owe them, you no longer own the home, and you can’t sell it.

How can I sell my home

pre-foreclosure?

When you’re facing a foreclosure, you have a couple of options for selling your home. You can go the traditional route, listing your home for sale and possibly hiring a realtor. While this is the best way to get the full market value for your home, it can take months, even years, to sell a home this way, and in a pre-foreclosure scenario, you don’t have that time. There are only a few weeks of notice before the Sheriff’s Sale and a year or less of a redemption period, which would make it hard to sell the house on the traditional market, through a realtor.

However, there are selling options that are quick, easy, and relatively painless—selling for cash to a development company. These companies buy homes that they see great potential in—whether for renovation, the neighborhood, etc.—quickly, for cash.  

 

If your home is facing foreclosure, the Hometown Development team can help. We purchase properties in cash and can close on a sale in as little as 5 days. To avoid foreclosure, and move on with your life quickly, give us a call at 616-379-3090 or contact us online today. 

Buying a Remodeled Home vs. Building New

Posted on by Hometown Development

When you’re looking to move, the first question is always do you buy a home or do you build one? While there are benefits to both, you might find that buying a remodeled home rather than beginning new construction fits your needs best, especially if you have your perfect neighborhood in mind. If you’re weighing buying vs. building a home, here are the benefits of buying a remodeled home that you should consider.

 

Move in Quicker

Building a home can take months and months. First, there’s getting all the permits and clearances, then there’s the construction, and inevitably, there are some issues and delays. If you buy a remodeled home, on the other hand, the house will be yours and the keys will be in your hands much sooner after signing the contract than with new construction.

 

Spend Less Money

When you buy a home that’s already been remodeled, the only money you need to put into it is the purchase price. When it comes to building a home, a lot of your costs are going to be eaten up with building materials and construction labor. 

 

Location, Location, Location

If you’ve ever watched HGTV, you know that finding property in your dream neighborhood can be difficult. For the most desirable neighborhoods with great school districts, empty lots that you could build on are scarce to be found or simply nonexistent. If you really want to live in a certain part of town, a remodeled home can be your best chance of doing so, without having to settle for a run-down fixer-upper.

 

Less Hassle

Managing a new home build is difficult, even when you’re just the homeowner and you’re leaving most of it to the pros. There are all sorts of decisions to be made, budgets to stay on top of, and timelines to meet. That’s a lot for a busy person to take on, in addition to planning your move and balancing your everyday life. Buying a home that’s already remodeled means that you get the benefits of the remodel—a gorgeous, updated, contemporary home—with none of the headache or expense.

  

If you’re considering buying a remodeled home in the neighborhood of your dreams, be sure to check out Hometown Development’s completed and ongoing home renovations here in West Michigan! We’re always looking for buyers, and we’d love to work with you if you see an ongoing project you’re interested in. For more information about our available remodels and properties, contact us online or give us a call at 616-379-3090. 

6 Tips to Selling a Home As-Is

Posted on by Hometown Development

Are you considering selling your home as-is? Whether you need to move out quickly, don’t have the time or money to make the repairs your home needs, or are just hoping to get out of an expensive, troublesome mortgage, an as-is sale can offer you a lot of benefits. No matter why you’re selling your home as-is, here are 6 top tips to help you sell your house as quickly and as smoothly as possible. 

#1 Be Honest

The great thing about selling a home as-is is that you don’t have to handle any of the necessary repairs or problems your home might have. That said, you are still legally obligated to honestly answer any questions a buyer asks you. If you know your roof has a leak, your foundation has a large crack, or you’ve experienced electrical issues, termite damage, or any disputes over the title, you’ll have to disclose that information to the buyers. It’s good to know that if you’re selling the home as-is, these issues won’t typically deter a serious buyer, but you do have to disclose them before selling the property.

#2 Create an Attractive Listing

If you’re planning to sell your home as-is, and aren’t interested in hiring a realtor or reaching out directly to a specific real estate investor, then it’s a good idea to create a digital listing on real estate sites like Trulia and Zillow. In most cases, you can post a listing for free, and you can specify in your description that you’re selling the home “as-is”. 

To create an attractive listing, make sure you take a few great pictures of your house. Wait for a bright, sunny day, so your pictures feature a lot of natural light, both indoors and outdoors. Then, post those images with an honest, positive description of your home. 

#3 Price to Sell 

If you’re listing your home online and you’re planning to sell as-is, you’re going to want to price your home to sell. Many homeowners think they can start at a higher price, and then just let potential buyers talk them down a bit, but in reality, this typically just increases the amount of time your home sits on the market. 

Price your home to sell, keeping in mind that when you sell as-is to a cash buyer, you don’t have to pay for closing costs, any inspection fees, repairs, or renovations. In many cases, you won’t even have to clean your home. The offer you get from the buyer is the money you’ll keep, so remember that as you set a price for your home. 

#4 Don’t Just Accept the First Offer

Now that you’ve listed your home for a great price online, it’s time to listen to offers. If your home is priced well, and listed “as-is”, you’ll likely start to see offers from as-is buyers, investors, and individual homeowners looking for a project. It’s important to take a good look at each of the offers you get, rather than just accepting the first one. If you’ve just listed, give your home a few days before you accept an offer. It can be in your best interest to hear what all of your potential buyers have to say, so you can choose the offer that’s best for you. Remember that offers aren’t all just about cash, either. If you’re still living in the home, you’ll want to make sure you accept an offer from a buyer who gives you a reasonable amount of time to move out, and who can close on your schedule. 

#5 Choose an Investor You Trust

When you sell a home as-is, many of your potential buyers are likely to be real estate investors, like Hometown Development. It’s important that in the end, you go with an offer from a buyer or investor that you trust, and who has a good reputation. You don’t have to accept an offer from an investor you don’t like, or who seems to be pressuring you into making the sale. If you don’t feel quite right about a buyer, it never hurts to do a bit of homework — look them up online, check out their business profile, and see if they have any reviews from previous clients. A great real estate investor will have a solid reputation and a legitimate website offering information about their past and current projects. 

#6 Be Flexible

Selling your home, even when you sell as-is and for cash, isn’t always easy. It’s important to be flexible as the seller, so you can make that sale happen in the time frame you’re hoping for, and for a reasonable price. Remember that when you sell your home, you’ll have to be available to let buyers walk through and take a look at it, and also remember that not every buyer is going to give you an offer that’s at your asking price. As long as you remain flexible, and work to accept an offer from a legitimate buyer who is willing to work with you, too, you should be able to sell your home as-is, with minimal hassle. 

 

Selling a home as-is doesn’t have to be difficult. If you need to move on from your property quickly, and without making repairs, the Hometown Development team would be happy to help. We purchase properties exactly as-is, and for cash. For more information about our process, and for your own personalized quote, give us a call at 616-379-3090 or contact us online. 

What Can I Do With Inherited Property?

Posted on by Hometown Development

If you’ve recently inherited property from a loved one, you may be wondering what to do. Whether you’ve inherited the property solely, or jointly with siblings or other family members, it can be a difficult decision to keep or sell the property, especially as you grieve the loss of your loved one. In nearly every case of inherited property, you have three basic options — keep the property, list it, or accept a cash offer. Here’s what you need to know about each:

Keep the Inherited Property To Live In or Rent

Keeping the property is a good idea if you would like to live in it, or if the property is well-suited for renters. If you’ve inherited the property on your own, this is an easy decision to make, because you’re calling all of the shots. If you and a sibling or another family member inherited the property together, you’ll have to come to an agreement together. 

For example, if you decide to live in the home, you’ll have to compensate your sibling accordingly, either by buying them out of the house or by paying them regular rent. This is a little easier to work out if you’re renting out the property — you simply split the rent equally between all owners.

If you do plan to keep the property, there are a few housekeeping items you’ll want to take care of before you or a renter officially move in:

  • Plan for property taxes to rise — If the home has been owned by the same person for quite some time, it’s likely that your property taxes will go up now that the property has transferred ownership. While this isn’t too big of a deal if you’re renting (you can just up the rent accordingly) this could be an issue if you’re planning to live in the home. 
  • Get a home inspection — Many inherited homes have been lived in and maintained by senior owners, who may not have been able to keep up with large-scale maintenance in their later years. Before you officially move in or rent out the house, it’s in your best interest to have the property inspected to ensure there are no major structural problems to be fixed.

Keeping your inherited property is a great way to move into a home that’s better suited to your family, or generate a bit of extra income by renting it out. Either way, know that you’ll have to tackle a bit of work — cleaning, making repairs, ensuring there are no necessary renovations — before anyone can move in. 

List It

If you live far from the inherited property, or if the property was left to multiple parties, you might be considering listing the home on the traditional market. This is an especially attractive option if there was no mortgage on the home because everything you make on the home will be a profit to split between you and the other inheritors. 

Listing a home on the traditional market is a good way to recoup fair shares for all of the property owners, but it will take a bit of work. Here are a few of the steps that go into listing a home on the market: 

Tidy Up the Property

First and foremost, you’ll have to clean the home out entirely to prepare it to be listed, and it’s also a good idea to get a pre-inspection done before you put the home up on the market. This will help you get on top of any big renovations or repairs, and have them completed before you list the home. 

Find a Realtor You Trust

You’ll also need to find a realtor you trust. It’s a good idea to talk to a few realtors who are familiar with the neighborhood and the local market. Choose a realtor who is invested in your property, and understands your goals for selling the home. If you live further away, you’ll be relying on your realtor to get the home sold quickly, so it’s important you choose someone you can trust. 

List the Property

Once you’ve identified and made any necessary updates or renovations, have cleaned your inherited property up, and have found a realtor, you can list the property. Remember that while listing the home traditionally can provide a number of benefits, it can also take some time. The closing process alone can take up to 90 days, and sometimes more. If there is a mortgage on the property, you and the other owners of the property will have to keep up on those payments until you officially close on the home. 

Choose a Cash Offer

Inheriting a home can be stressful, especially if you’re inheriting the property with a number of other family members, or if the home has an expensive mortgage payment or costly necessary repairs. If you and the other inheritors just aren’t sure how to keep up with the property, you might consider an all-cash offer from a trusted local real estate investor. 

This is also a good choice when you don’t live near the inherited property. When you work with a real estate investor who makes a cash offer, you don’t have to worry about:

  • Cleaning — Real estate investors purchase homes as-is, so you can take the items you want from the home, and move on quickly, without worrying about cleaning and tidying up. 
  • Renovations — Since the home is purchased as-is, the real estate investor assumes any structural problems or large-scale necessary renovations or repairs. 
  • Closing — Cash offers can be made and closed on in a matter of days, not months. If you’re worried about making mortgage payments or rising property taxes, a cash sale can help you move on from that inherited property quickly, at minimal to no expense to you or your family. 

If you’re dealing with a home that’s in disrepair, or a number of inheritors who can’t agree on the best route to go for the property, accepting an as-is cash offer is often the best option. Everyone gets a fair split of the profit, and you’re all able to walk away from the inherited property without additional expense on anyone’s part. 

Inheriting property isn’t always the gift it seems like at first. If you’ve recently inherited property you don’t have time to care for or keep, Hometown Development can help. We purchase properties in any condition, for cash. Contact us online, or give us a call at 616-379-3090 for information about a cash offer for your home.

Answers to Some of the Most Common Divorce Home Ownership Questions

Posted on by Hometown Development

Divorce is difficult for anyone. No matter what your assets or whether you have children or not, there’s no easy way to finalize a divorce. For many couples, homeownership is one of the most difficult assets to divide fairly. Not only do you have to decide what to do with the home, but you also have to keep up on mortgage payments throughout the divorce, which can get messy. If you’re going through a divorce, and aren’t sure what to do with your home, here are answers to some of the most common divorce homeownership questions: 

Should I Keep The House, or Sell?

Really, this question is at the heart of every divorce homeownership concern. Ultimately, you want to know what’s in your best interest, and in the best interest of your family — to sell, or not to sell. Unfortunately, there’s no good cut and dry answer to this question, because it depends on your specific situation. 

There are two situations where the answer is relatively easy:

    • You own the home jointly and are looking for the simplest solution. 
      • If you and your ex own the home jointly and are both on the mortgage, selling is certainly the easiest option. Selling the home means you can get rid of the mortgage, and split any profits right down the middle. 
      • There’s no worry about who keeps the house and how to quantify that asset. The sale quantifies it for you, and neither of you has to worry about any long-lasting implications on your credit. 
    • One spouse came into the marriage with the home. 
      • If you or your spouse purchased the home before you entered into the relationship, it is likely that they will have rights to the home, unless the other spouse was added to the deed or mortgage later on. 
      • In this situation, that spouse who entered into the marriage with possession of the home is likely to keep that asset. It’s up to them to make the sell vs. keep decision. 

If neither of these situations applies to you, then solving the divorce homeownership challenge can be a bit more complicated. We’ll get to some of those situations next. 

Can I Buy Out My Spouse?

There are a number of situations where assuming full ownership of the home from your spouse makes sense, like keeping children in the same school district and home, or when market conditions aren’t right yet to sell. 

The only way you can buy out your spouse is if you make enough money to qualify for the mortgage alone. In most cases, spouses qualify for mortgage loans together, so it’s not necessary to make so much money on your own. But, if you’re hoping to buy out your spouse and assume full ownership of the home, you’ll have to prove to your lender that you can afford the monthly mortgage payments. Unfortunately, this can be tough amidst divorce proceedings that split your assets and savings in half. 

What Do We Do About the Mortgage?

No matter what you decide — to sell the home, assume full ownership, or relinquish the home to your spouse, it’s important to adjust the mortgage accordingly. If you no longer live in the house, and have been taken off the deed, but are still listed on the mortgage, any missed payments will continue to affect your credit. 

This is one of the reasons many divorced couples opt to sell the home. It’s difficult to be taken off a mortgage once you’re on it, and it’s also stressful to be named on a mortgage that you don’t have control of. Selling the home ensures that you pay that mortgage off, preserving your credit to make large purchases in the future. 

If you do opt to relinquish the home to your spouse, make sure your name is taken off the mortgage, if possible. This way, you don’t have to worry about their future finances affecting your credit. That leads us into our next question:

How Will This Affect My Ability To Purchase a New Home?

How you choose to solve the challenge of divorce homeownership will dictate your ability to purchase a new home. Divorce is expensive and stressful. It’s easy to forget about things like mortgage payments during divorce proceedings, especially when it’s not yet clear who will own the home, and who is responsible for the mortgage payments. For that reason, many couples start to miss mortgage payments, which can seriously affect your ability to purchase a new home. 

Missed payments will affect your credit, and if your loan goes into default while you’re sorting out your divorce, you could face serious repercussions in your ability to purchase a new home down the road. Some lenders may refuse to offer you a loan, even if it’s not your fault that mortgage payments weren’t made. 

If a lengthy divorce process is making it difficult to keep up with mortgage payments, an as-is, cash sale could help. Hometown Development purchases properties in any condition, with no need for cleaning or repairs. Simply contact us, get a fair cash offer, and move on from your home with no worries of disrupting your credit or further disputes over divorce homeownership.  For more information about our process or for a personalized offer, give us a call at 616-379-3090 or contact us online at your convenience.

Licensed Contractor

Licensed Builder
Licensed Real Estate Agent

All closings performed by Bell Title
Meghan Vandenhout 616-942-8955

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