A friend of mine just separated from her husband. I ran into her and she asked me what she could do if the house went into foreclosure. I wish this was not a common occurrence, but unfortunately it happens very often.
How does it start? When she moved out, the mortgage was paid up and on time every month. She moved out because he has not been trying to find work. Without any income and her second income, he will not be able to make the payments. The divorce will take several months if not contested and if late payments begin they will affect her credit also. They are both on the home loan; both could have their credit ruined for many years.
Somewhere in the separation process, couples need to realize that the credit will have to be separated also. She must get off the joint home loan and he cannot afford the payment by himself. The only way out of this is they must realize the house will have to be sold. Somewhere in the legal process of divorce, financial planning needs to be required. Two people separated cannot maintain the lifestyle that they had as a couple. Very often they cannot separate the debt, because neither qualifies for everything they have now by themselves.
If you are going through a divorce, call to find out more about your financial options and to begin planning for recovery. (865) 742-3384
This blog is for informational purposes and is the opinion of the writer. In financial matters always solicit professional advice and legal counsel if necessary.
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