It is not uncommon for couples who are in the process of ending their marriage to face financial challenges, too. In fact, many find themselves facing divorce and foreclosure simultaneously. If this is the situation you’re in, it’s wise to seek counsel from a debt relief attorney regardless of whether you’ve already hired a divorce lawyer. When so much is at stake, it’s essential to turn to someone who specializes in foreclosure proceedings and can assist with your specific situation. In the meantime, here is some general information about foreclosing on a home while also ending a marriage. 

Who Is Financially Responsible?

When a couple purchases property together and both parties sign the mortgage and promissory note, they are both responsible for the mortgage regardless of any pending divorce proceedings. If one spouse wants to keep the home after the divorce, he or she can assume the loan or refinance it. The spouse who does not want the property needs to ensure the other party actually takes over the mortgage, though. Otherwise, if the spouse who retains ownership fails to pay the mortgage, the lender can commence foreclosure proceedings against both parties—even after divorce. This will damage both credit scores and, in the state of Arkansas, could lead to a joint deficiency judgment. 

Is It Possible to Avoid Foreclosure?

If neither spouse wants the home after the divorce has been finalized, there are a few possible approaches for avoiding foreclosure. For example, they could opt to sell the property through traditional means and use the funds to pay off the mortgage, or they could arrange a short sale with the lender. Depending on the circumstances, the lender might also agree to accepting a deed to the home so they can obtain title in lieu of commencing foreclosure proceedings. Regardless of which approach you ultimately choose, it is wise to hire an attorney to facilitate the transaction. 

If you’re facing foreclosure proceedings or otherwise struggling financially in Arkansas, turn to Bueker Law Firm. Based in Stuttgart, this firm is led by Attorney Jeremy Bueker, who has been helping clients regain their financial footing for more than 16 years. Whether you want to declare Chapter 7 or apply for Social Security disability benefits, you can rely on this bankruptcy attorney for strategic counsel at every stage of the proceedings. To get in touch with him and request an initial consultation, fill out the form on his website or call (870) 673-1313.