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What to Know About Facing Foreclosure During Divorce Proceedings April 15, 2019

Fairfield, Butler
What to Know About Facing Foreclosure During Divorce Proceedings, Fairfield, Ohio

It’s not uncommon for couples to struggle financially during divorce proceedings. If you and your spouse fall behind on mortgage payments, though, it’s going to complicate the situation considerably. Here’s what you should know about facing foreclosure while in the process of ending your marriage. 

Determining Financial Liability 

If the family home is foreclosed on during a divorce, it will remain on your credit report for seven years—if you’re actually the one responsible for the mortgage. To determine if you’re financially liable for the home, review the lending documents and property title. 

If you and your spouse secured the mortgage together, a foreclosure will affect both of your credit scores. If, on the other hand, only one of you signed the promissory note, that individual will be solely liable for the missed payments and any judgments issued. 

Determining What Will Happen to the Home 

foreclosureIf one of you wants to keep the home, it may be possible to prevent foreclosure by reinstating the mortgage, which essentially means bringing the loan current and refinancing it. The party that wants to retain ownership will simply have to catch up on all payments and then assume the mortgage in his or her name alone. While the state of Ohio does not recognize a homeowner’s automatic right of reinstatement, the terms of the mortgage agreement may allow it. 

If neither party wants to keep the home, it’s still wise to do what it takes to prevent foreclosure to protect your credit. Finalizing the divorce is going to prompt a major change in your financial circumstances, and it will be much easier to navigate the transition with good credit. The best way to avoid foreclosure will depend on the circumstances. For example, you might be able to arrange a short sale with the lender, or you may be able to sell through traditional means and use the proceeds to pay off the mortgage. 


If your family home is at risk of foreclosure, turn to R. Dean Snyder Attorney At Law in Fairfield, OH. Since 1988, Dean Snyder has been helping clients regain their financial footing. He focuses solely on providing debt relief services and can assist with everything from filing for bankruptcy to fighting foreclosure. To learn how he can help you navigate Ohio’s foreclosure proceedings, visit his website, and then call (513) 868-1500 to schedule your first meeting. 

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