Lisa and Jim's Northern Nevada Real Estate Blog: Northern Nevada Real Estate ... Credit Nightmares Of The Innocent

Northern Nevada Real Estate ... Credit Nightmares Of The Innocent

 
Northern Nevada Real Estate
Credit Nightmares Of The Innocent
Lisa Wetzel and Jim Valentine RE/MAX Ralty Affiliates
 

Credit Nightmares Of The Innocent

Many people have found themselves severely impacted in Northern Nevada by the recent global economic collapse, often in unexpected ways. Many of those ways are in the area of credit, and they are creating nightmares for the innocent victims experiencing the consequences of these times. Financial hardship puts a lot of stress on relationships and can quickly become the catalyst for the decision to divorce. Divorces that involve real estate today are much different than those of yesteryear.

 

It is common todayin Nevada to have a negative-equity home to dispose of in a divorce proceeding. One spouse typically receives the right to live in the residence and continue to make the payments. That is a recipe for financial disaster in many cases. The recipient of the family home goes from a dual income situation to having to make everything work by his/her self. Today the eventual outcome is usually a short sale.

 

Here is where innocent victims are surprised. It is amazing how often when the individual with the house wants to sell short that the ex-spouse refuses to cooperate. There can be many emotional justifications and reasons for the lack of cooperation, but regardless, when that happens both parties are suddenly affected in ways they never anticipated when they dissolved their marriage and allocated assets. While the spouse with the house was told by the court to make the payment, if he/she can't it, doesn't take long for all parties to realize that they are still joined at the checkbook and credit bureau.

 

If the only way out is to sell the home short, it is in both parties' interest to cooperate. The ex-spouse that didn't get the home may feel like a victim, but there is no time for whining as the nightmare will only worsen. If payments aren't made the credit dings begin... for both parties. You got the loan together and are both still "jointly and severally" responsible for its payment regardless of the court order. The next step is foreclosure which has a greater negative impact on your credit. The judge said your ex had to make the payments, but if the changed financial circumstances mean the payments can't be made there is little you, or the court, can do.

 

We recently had a Buyer credit nightmare where the ex-spouse was cooperating wonderfully, but due to government employment cuts the fact that child payments were completed was not getting reported to the credit bureaus. The matter was resolved when the Buyer presented a letter of auto-payment rejection from the same government body saying that the account was paid in full and they would not accept the automatic payment. We closed 45 days late with the credit-reporting arm of the government still not having acted on the matter.

 

Our Advice: Dredut Nightmares of the Innocent ... Look at the long term possibilities when you make financial commitments. What can happen? What are your consequences if it happens? Instead of getting the house out of spite, if your ex can better afford it you are better off letting the house go rather than to have to go through working closely together to short sell it later. If you are done with one another, be done! If you have children it is in your children's best interest for you both to maintain good credit. Credit is important in today's financial/consumer world.

 

There are many other ways that innocent victims are adversely credit impacted by circumstances beyond their control that create a living nightmare. Your Agent and Loan Officer can help you work through these challenging times.  

 

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!

 

 
Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts.

 

 

Contact them at  

carsonvalleyland@hotmail.com www.carsonvalleyland.com 

 

 
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Lisa Wetzel & Jim Valentine
 RE/MAX Realty Affiliates
1320 US Highway 395 N.
Gardnerville, Nevada 89410
775.781.5472 - Cell
775.783.6854 - Direct
775.552.8585 - Fax
 
- carsonvalleyland@hotmail.com
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Comment balloon 0 commentsLisa Wetzel • December 27 2012 06:23AM

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