March 18, 2010
/24-7PressRelease/ --
Divorce and Foreclosure in Florida
Although recent statistics suggest that an end to the economic crisis may be within sight, the Mortgage Bankers Association's National Delinquency Survey indicates that Florida ranks first in the nation with 26 percent of mortgages in the state one or more payments past due as of December 31. Even worse, 20.4 percent of Florida mortgages are at least 90 days past due or already in foreclosure. And while unemployment and adjustable rate mortgages have undoubtedly contributed to these numbers, one cause is often overlooked: divorce.
Divorce is almost never easy financially and it is not surprising that couples can face problems when deciding what to do with their home, which is usually their most valuable asset. Factors that may lead divorcing couples to foreclosure include:
-The splitting of what was once a single household into two. Although the couple was able to afford their home when they were together, they may be unable to meet their obligations individually post-divorce, particularly when saddled with the burden of finding a new place to live.
-The soft real-estate market. Many homes are currently "underwater" or "upside-down," meaning that their current value is less than the amount owed on the mortgage. Thus, even if the couple is successful in selling its home, the spouses still find themselves in substantial debt.
Couples who anticipate difficulty in paying their mortgages upon divorce might consider several options:
-It may make sense for one spouse to keep the home under the current mortgage. Refinancing may be an option, but the bank may not be willing to offer new terms if the income of the remaining spouse is individually insufficient to support the loan.
-Making the home available for rent may provide extra income to support the mortgage payments until the real estate market improves and the value of the home rises. This could take time, however, and it means that a couple would remained linked financially and otherwise even after the divorce.
-Depending on the circumstances, couples may even consider allowing foreclosure or filing for bankruptcy. It is important to note, however, that governmental buy out and assistance programs are available for both civilian and military families. Please ask your attorney for more information regarding these new options.
Although times are tough, couples seeking divorce and facing possible foreclosure do have options. An experienced family law attorney can provide you with the information you need to do what is best for you. If you or someone you love is considering divorce, contact an experienced family law attorney today.
Article provided by The Lasky Law Firm
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www.laskylawfirm.com---
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