Sell Your Home in a Short SaleĪgain, if you owe more than your home is worth, a short sale might be a viable alternative to consider. In this situation, your lender might agree to a short sale or a deed in lieu of foreclosure. But if you're underwater on the mortgage (your mortgage debt is more than the home's fair market value), you might not be able to sell it for a price that will pay off the loan. If neither you nor your spouse wants to stay in the home and have equity in the property, your best option is to sell it and split the proceeds. Your equity is calculated by taking your house's value and subtracting the amount you owe on your mortgage and any other liens on the property.
"Home equity" is that part of the property you actually own. Sell Your Property for More Than You Oweįortunately, these days, many homeowners have equity in their homes. But once you understand your alternatives, you can hopefully make a sound financial decision together.
selling the property and paying off the mortgage loan (if you have equity in the property).Or, under some circumstances, you might decide it's in your best interests to let a foreclosure happen.
You and your soon-to-be-ex might have to work as a team with your loan servicer to sell the house or change the loan terms. Your options depend on what you want to do with the residence (keep it or give it up) and whether you have equity in the property. If your house is worth less than you owe on the mortgage or if you're facing a foreclosure, your divorce is a bit more complicated than others when it comes to deciding what to do with the family home.