The real estate market crash made and still makes life difficult for homeowners across the country. House values have plummeted and people are left with loans that are worth more than their homes, making it nearly if not completely impossible to keep up with expensive loan payments or even to sell. According to a Yahoo! Finance article, approximately 3.5 million homeowners are behind on their mortgage payments while another 1.5 million have already begun the foreclosure process. In the next two years, it is estimated that there will be 3.6 million foreclosures.
This leaves homeowners with a couple of different options: 1) Strategically default on the loan; or 2) try to save the house. Unfortunately, the latter option rarely ends well and the homeowner ends up depleting their entire life savings before having to default anyway. Trying to sell, though an option, is very difficult. If the lender does not agree to the short-sale, the home will fall into foreclosure.
This obviously poses many financial problems for homeowners, but if the homeowners are a married couple trying to divorce, this also creates other complications. Oftentimes, in divorce, a couple will sell their marital property, split the proceeds and move on with their lives. But if they are unable to sell, they may be prevented from doing so. In addition, several other factors, such as child support and maintenance, may also be affected.
Trying to get through a divorce, while dealing with the deficit value of your home, can make establishing the terms of your divorce very frustrating and difficult. If you are a homeowner suffering from the housing market crash who also wants a divorce, speaking to an experienced divorce lawyer in Chicago at Nottage and Ward can help you understand your legal rights and options. To learn more, contact us today for a consultation at (312) 332-2915.
