If you’re going through a divorce and you’re trying to sell a house, you might be wondering, “what if my house won’t sell during a divorce in Austin?” That’s a good question to ask so be sure to read this blog post and we’ll share our best answer with you…
A divorce can be a challenging situation: it’s complicated, it’s expensive, it’s time-consuming, and emotions are running high. And in all that effort you also need to sell your house so that you can split the value of any equity in the house and put it all behind you. But what if your house doesn’t sell? If you’re going through a divorce and wondering, “what if my house won’t sell during a divorce in Austin?” then here’s what to do…
What Are The Reasons Your House Doesn’t Sell?
Unfortunately, there are many reasons your house might not sell. Some of the reasons are related to the normal market conditions (and they might be present even if you weren’t going through a divorce). But there might be additional reasons that your house doesn’t sell — for example, maybe you have a complicated divorce or there’s a lot of conflict between each party in the divorce and this makes it too difficult for the buyer to negotiate on the sale of the property.
This Delay Adds To The Problem!
If the house is not selling as quickly as you’d like, this just adds to the problem and it ultimately ends up costing you more — in bills and taxes and mortgage payments, as well as in additional attorneys fees.
Simply put, you might be hoping to get a high price for your house but your divorce could actually be scaring people away and costing you money.
Fortunately there’s another option…
Strategy For Divorce Houses: Sell To A House-Buying Company
Here’s an effective strategy for people who are trying to sell their divorce house — instead of listing the house with an agent, sell the house directly to a real estate buying firm like us here at The Texas House Buyer. As real estate buyers, we may not always be able to pay the market price for a house… but many divorcing people realize that holding out for a higher price can actually be a costly strategy once you factor in the cost of repairing the property, the carrying costs while you wait months for an agent to find a buyer, and then the agent’s commission (sometimes thousands of dollars).
A quick sale is ideal for couples facing divorce but the reality is you need patience. Not all houses quickly sell. If you cannot sell your property during the divorce, you have other options available to you.
Consider renting out the house on a month-to-month basis while you attempt to sell the property. You could increase the amount of rent to earn some cash or make the rent payment equal to the mortgage payment while you wait for a buyer. With a month-to-month tenancy, you do not need to worry about scaring off potential buyers who do not want to deal with evicting a tenant. You may also consider a longer lease agreement and take the property off the market until the housing situation is more promising.
One spouse may buy out the other spouse from the property allowing him to keep the property. You can make this arrangement between the two of you or you can involve divorce attorneys. Either way, you need to come to an arrangement on how much one spouse pays the other for his share of the property. At this point, the spouse who is retaining the property refinances the mortgage in only his name taking the spouse off the deed and paying her the equity in which she is entitled.
If neither of you want the property, you may negotiate with your lender to perform a short sale on it. A short sale occurs when you sell the property for less than what you owe on the mortgage note. You lose all equity in the property and get a ding on your credit report. A short sale is one of the last resorts because it does significantly lower your credit score and comes with tax implications.
Spouses who cannot sell the property — either traditionally or in a short sale — may walk away from the property. A deed-in-lieu of foreclosure occurs when you return the keys to the lender, sign over the deed and leave the residence. Like a short sale, a deed-in-lieu significantly affects your credit report and score. You may also face tax complications with the forgiven debt on your deed of trust.
Foreclosure is the last option for struggling homeowners who cannot sell the property. In foreclosure, the trustee takes the property and sells it at a foreclosure auction. The amount the property is auctioned for pays off the lender. The majority of foreclosures in California are non-recourse in which the lender cannot pursue a deficiency judgment for the balance remaining on your loan contract.
If you’re wondering, “what if my house won’t sell during a divorce in Austin?” and if you want to sell your house fast, a real estate buying firm like ours is the fastest and simplest choice to get the property out from the middle of your divorce, give you money for it, and allow you to wrap up this portion of the divorce proceedings.
Watch this video on How We Buy Houses!
To learn more about our real estate buying program and how we might be able to help you out in this challenging situation, click here and fill out the short form or give our team a call at 512-593-6990.