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Should I Sell My House Before or After Divorce in Texas?

March 27, 2024 • Matthew

The question that gets asked often when people are considering divorce is, “Should I sell my house before or after divorce?”

Whether you should sell a house before or after divorce in Texas is going to depend on a lot of variables.

Most often there are so many things to deal with during a divorce that it becomes overwhelming and frustrating. Situations like who gets the house after a divorce, divorce buyouts, and refinancing. One may not think clearly and make decisions based on their emotions which may not be the best decision at the time. There is no doubt that for homeowners that are going through a divorce that the question, “Is it better to sell a house before or after a divorce becomes a reality?”

sell my house after divorce

Is it Better to Sell a House Before or After Divorce?

Regardless of whether you sell a house before or after divorce in Texas, you will still want to sell a house at a profit.

Even though you may be in a hurry to get your finances in order as they pertain to the divorce, the timing of the sale is going to be important.

How profitable this will be will depend partially on the housing market at the time, the economy in general, and how long you can wait for the right buyer.

Then there are the other costs that come with selling a house that has to be taken into account. You also have to look at the rules and regulations as they pertain to the state as to how assets are handled in a divorce.

This will play a big factor in helping you to make the decision as to when is the best time to sell.

 Selling My House Before Divorce

should I sell my house before or after divorce?

Making a Profit on the Sale

There can be tax implications that come with the home sale that will have to be decided upon and may also be part of the divorce proceedings.

If you sell at a profit then there may be taxes that have to be paid. Then you may be eligible for a capital gain deduction.

How this is going to affect you will all depend on the decision that is made between you and your spouse for filing your taxes.

If you are selling before your divorce then you both may decide to file the last taxes jointly. If you sell the house after your divorce then you are probably filing separately.

If you need to consider breaking your mortgage read more about the ramifications here.

There can be some tax advantages to filing separately. For example, if you are co-owners of the house you may be eligible for up to $250,000. of capital gains exclusion. This is dependent on your being able to prove the use and ownership tests for the property.

The same advantage may also apply to your spouse who is filing separately. If you decide to file jointly then you both may be able to take advantage of a $500,000 exclusion based on meeting the criteria for this.

Your tax obligations are one of the most important considerations to be made when you are trying to decide whether to sell a house before or after your divorce.

Realizing a Loss On The Sale

alone with the thought to sell my house before or after divorce

It may be that you are not in a good financial position with the ownership of your home. You may be dealing with an underwater mortgage or negative equity.

This is the case when you owe more on your house than what it is currently valued at. If you are going to sell the house at this time you will end up with a loss.

This will be taken into account during the financial division of assets in the divorce and will be a debt that you will both owe to the mortgage lender. The lender has the rights to come after you both to satisfy the debt owed to him

Considering A Short Sale

When deciding to sell a house that has too much owed during a divorce, you may find that you are able to sell the property through a short sale. Negotiations may be made with the mortgage lender to give up his rights to hold you and your spouse responsible for any balance that is left owing after the sale.

Sell My House After Divorce

splitting assets so I can sell my house before or after divorce

If you are able to communicate with your spouse on a reasonable level you both may be able to come to an agreement not to sell the house until the circumstances are more favorable. You may both decide that it would be more beneficial to you financially to sell the house when the housing market is in your favor. Or, until you are able to pay down the mortgage so you don’t have to deal with negative equity.

Some couples who realize that they are both going to be in a tough financial situation because of the divorce are willing to make some concessions. They will both hold onto the title of the home and both remain living in it. One may occupy the basement while the other takes the upper level. While this is a good attempt at trying to find a plausible solution to the financial dilemma it doesn’t usually work out well.

Another option when considering selling a house before or after divorce, when it’s not the right time, is to still keep the title in both names.

However, one will move out of the home while the other remains in it. This still incurs some additional expenses and potential financial hardships for both parties.

While there are several options that relate to not selling the house at the moment it is important that whatever agreement is made is put in writing. Things change after the divorce and decisions that are made prior to or during the divorce proceeding may be ones that don’t seem feasible after the divorce is final.

If the decision to sell has been reached where the house will not be sold until after the divorce, then other factors need to be considered.

It will have to be determined who is going to continue to pay the mortgage. Agreements will have to be made as to who is responsible for the upkeep and maintenance and paying the utilities and expenses.

Ideally, these types of agreements and arrangements should be made under the advice and direction of the respective lawyers for both parties.

So Should I sell My House Before or After Divorce?

paperwork on whether to sell my house before or after divorce

There are pros and cons to both selling a house before a divorce or after a divorce and it takes careful thinking and planning and being logical when making decisions. Relying on the right advice and resources can help you make that decision.

Find out more about whether a house will need to be sold during divorce by reading this article.

Sell Your House After a Divorce

If you need to sell your San Antonio house fast, we’ll give you a cash offer as soon as 24 hours! To get your cash offer, or to get answers to any questions you have, call us at 210-596-9669. There are no obligations in contacting us!
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

I Need to Sell My House, What Should I Do?

March 20, 2024 • Matthew

“Help! I need to sell my house!”

It happens all the time. People have situations that leaves them saying “I need to sell my house NOW!”

There are many reasons a homeowner may be looking to sell this year. Job relocation, family transplanting, or property downsizing are all common factors when considering to sell. With 2016’s healthy housing market and continual recession recovery, capitalizing on a seller’s market is a smart, financially sound decision many homeowners are making. But many sellers wonder where to even start. How do I let go of my property when I need to sell my house fast?

stressed because i need to sell my house

When you’re thinking ‘I need to sell my house fast’, homeowners may believe diving right in will save them time and money. If selling as soon as possible is a priority, knowing the overall selling process and the few considerations involved will be invaluable information that will shorten your property’s time on the market. Before initiating the selling process, homeowners should consider these simple steps to ensure their home is sold as quickly and efficiently as possible.

How Much Do You Owe?

Knowing as much about your property as possible is a great place to start your selling process. How much square feet are you working with? How old is the property and has it appreciated during the years you’ve owned it? Are there any major repairs or updates needed that might impede a sell? The answers to these and multiple other questions will not only help you sell your home to potential buyers but also give you a general estimation on how much to price it.

One of the most important questions homeowners must answer, however, is about their preexisting mortgage. How much money is left on your loan? Unless you’re keeping hard copies of the mortgage bill each month – a highly recommended strategy for anyone with long lasting payment plans – you might not be able to recite the exact figure off the top of your head. Thankfully, homeowners can remedy this issue rather quickly.

Determining the principal amount owed on a home loan is simple. A short call to the mortgage lender can give you all types of information: last amount paid, interest rates, payment plan terms, and even the exact amount still owed. Why is this information pertinent to homeowners looking to sell? Unless a homeowner is gripped with an underwater mortgage, knowing how much you owe means knowing how much profit you’ll potentially make from selling your home. Homeowners can make a pretty penny if they sell their property for more than what they owe. The capital (gains) earned can be taxed dependent on state and the situation, but most homeowners earn at least a few thousand dollars at closing. This can help pay off commission and selling fees or used as a basis for a new property. The more a homeowner knows about their mortgage, the better off they’ll be when starting the selling process.

A Little Research Goes a Long Way

i need to sell my house research

Taking the time to research your property is one of the most important steps when looking to sell your home. Unless a homeowner knows what similar houses are selling for, how long they’re typically on the market, and if those homes are in better condition, homeowners looking to sell are at a serious disadvantage.

Put in the effort and do some quick research for a fair home estimate. Most homeowners don’t know what their property is actually worth without requiring the aid of a professional. Whether it’s an appraisal or using the aid of an inspection, homeowners can be clueless to the value of their house. Without hiring professionals that require tremendous fees, an hour online can provide a safe estimate on your house.

What are the best sources to use when I need to sell my house? Third party real estate sites can offer property information in a particular region without calling in the professionals. Utilizing sites like Zillow and Trulia, homeowners will be able to compare their home to others on the market that have similar upgrades. Knowing what comparable homes in the same shape sold for is essential when determining a selling price. These sites also give statistics on homes. These stats can show how long a particular property took to sell. When needing to sell fast, knowing a home’s timeline on the market is essential.

Selling with an Agent

i need to sell my house with an agent

After gathering all the information you can about your property, it’s time to sell. Many homeowners are convinced that hiring a real estate agent to sell their property is the smartest decision. But selling with an agent can leave you in the housing market limbo for months at a time. If I need to sell my house right now, I’ll avoid real estate companies and travel the For Sale By Owner (FSBO) route.

Selling with an agent has its perks. Agents typically pay for your home’s advertising, prep for open houses, and find potential buyers. But these perks come at a steep price some homeowners aren’t willing to pay. Keeping your home in peek condition is one sacrifice sellers must make when using an agent to sell their property. Unless your family is immaculate and your property is already in showroom condition, sprucing up a property to meet a realtor’s expectations can be both time consuming and costly.

Realtors aren’t cheap either. Although they offer services that some busy homeowners may be thinking “but I need to sell my house now”, and most property owners can do what an agent does at a fraction of the price. Advertising your home on sites or in the paper can be just as effective as paying a premium for a realtor. Homeowners can also orchestrate their own open houses to attract buyers. Setting your home and providing information via homemade brochures require little time or cost. If you find yourself thinking “I need to sell my house quickly“, forego the hired help and do it yourself.

Selling with Matt Buys Houses TX

i need to sell my house fast

When I need to sell my house as quickly as possible, I seek out cash buyers. Not only do they offer fair prices on properties, home buyers provide the shortest timeline when selling. Forget three months on the housing market; how about three days? If you’re looking for a trustworthy cash buyer company with years of experience, consider Matt Buys Houses TX.

Avoid the typical hassles when selling your home. Matt Buys Houses TX can close within a week. Homeowners don’t need to make major repairs or updates to receive a fair cash offer; Matt Buys Houses TX will buy any property fast. Instead of paying for the appraisals, inspections, surveys, and closing costs associated with hiring an agent, Matt Buys Houses TX will buy your home without demanding out-of-pocket expenses. There’s no catch!

Capitalize on 2016’s healthy housing market by selling your property as soon as possible. If you want the best offer with the speediest time frame, consider Matt Buys Houses TX. They provide the smoothest transition between selling and moving without paying a dime.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.
Categories: We Buy Houses

Can You Refinance a House After Divorce?

March 13, 2024 • Matthew

As a single parent, affording a mortgage can be incredibly difficult. We’ve discussed what the divorce house buyout means, but we haven’t touched upon being able to refinance house after divorce. In this article we will cover refinance of the house before or after divorce, we will look at what happens if you can’t refinance the house after divorce and the buyout process.

refinance this house after divorce

Do I have to refinance house after divorce?

Most likely, especially if you wish to keep your partner off the loan. If you are the one who keeps the home after the divorce, you will have to take the loan while the other spouse goes through the buyout. Refinancing takes time and it’s often an emotional process. The first question you need to ask yourself is: are you able to do it?

There are a few ways you can get your name off a loan without even having to sell the house or refinance.

One of them is loan assumption…

What is loan assumption?

It means taking over the mortgage and continue to make regular payments as you were doing before without having to sell or refinance house after divorce. There are a couple of cons to loan assumption – as a single parent, it might be extremely hard to get qualified. When dealing with loan assumption you need to make sure you carefully read all necessary paperwork.

Taking a mortgage is another way you will be able to refinance house after divorce.

What happens if you can’t refinance house after divorce?

Apart from your ex staying on the loan, he is allowed to take you to court if you’re not able to refinance house after a divorce.

So to officially become the sole owner of the house, you will need to get a new mortgage.

a mountain house after divorce

So how do you get a mortgage after divorce?

My best tip is to make sure your spouse’s name is off the mortgage. You are no longer in charge of your ex’s financial situation, hence, getting his or her name off the mortgage might actually better your credit.

Your ex will then need to refinance his part of the mortgage while you continue to pay your own. Along with decreasing your debt and increasing payments over a shorter time, this will enable you to apply for a new loan.

While you’re going through a divorce, you should never buy a home – your credit rates will get lower and you will lose money. If your spouse’s lawyers find that out, they will fight for that money.
Getting a new mortgage as a single parent
Not everyone is in a stable financial situation after divorce, especially if you’re a stay-at-home mother.

thinking about refinancing a house after divorce

Finder wrote an absolutely amazing single parent’s no-nonsense guide to affording a home.

Step 1: Compare mortgage brokers
With mortgage brokers, you will be able to find a way to refinance house after divorce as a single parent with their knowledge on all suitable mortgage programs.

Step 2: Find government assistance
There are several income assistance benefits that could help single parents, including Family Tax Benefit A & B, Parenting Payment and the Child Care Benefit.

Step 3: Calculate your current income
My best advice is to consult with a financial advisor if you budgeting isn’t your finest skill. Know how much you earn and how much you can spend on a mortgage.

Step 4: Find a way to make more money.
Working from home, renting out a room in your house (read our articles on becoming a landlord!), and more. There are several different ways you can make more money to afford your mortgage.

Step 5: Choose the right loan
Again, a financial advisor might help you out with this one – getting the right loan that you can actually afford and pay off within time is essential.

Tips on affording mortgage with one income

  • Get a bigger deposit. It’ll help you lower the mortgage fee.
  • Always borrow what you can actually pay back – you never know what might happen to your financial state.
  • Reduce your credit card limit – even if you don’t use your card, your bank might think that you owe money. Reducing it to 50% might help you get a better mortgage deal.

cold feeling dealing with refinancing a house after divorce

Pros and Cons of Home Ownership

Home ownership pros:

  • Confidence in being independent.
  • Example for your children.
  • Payoff from your taxes.
  • Increase value on your home.
  • The ability to pay off your home eventually.

Home ownership cons:

  • Difficulties selling the home fast if relocation is in order (however, you can always go with a cash home buyer).
  • Improvements on your home might be steep financially.
  • Decrease of the value might affect your ability to sell your home later.
  • Sudden relocation necessities due to your spouses relocation if children are involved.

Learn more: Zillow offers a fantastic mortgage calculator – the payment breakdown will help you budget and the full report gives you the chance to see your full financial state, including how much you will spend on interest. Please note that these numbers might differ depending on the mortgage you are able to get.

If you are contemplating dealing with the house during a divorce, consider a divorce house buyout.

Interested in Selling to a Cash Home Buyer in San Antonio?

If you’re interested in selling a house to a cash buyer, you’re in for a treat. Matt Buys Houses TX is a reliable service, operating in San Antonio, TX.

How it works?

You give us a call, we give you a cash offer in 24 hours and your house can be sold in just 2 days if necessary. Got any repairs on the house? Doesn’t matter!

Give us a call on 210-596-9669 and sell your house in less than a week!
 

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

We Buy Houses Fast in San Antonio, TX

March 6, 2024 • Matthew

You’ve probably seen ‘we buy houses fast’ signs in San Antonio, TX, and wondered what they were about. Well… we buy houses fast in San Antonio, TX and I’ll tell you why.

First of all, welcome to our blog. Here you’ll find plenty of helpful articles on real estate, ranging from buying and selling your house to renting out your property. We offer tips and advice to anyone interested in the real estate business.

we buy houses fast

I need to sell my house fast!

You came to the right place.

In this article, I’ll discuss the importance of our house buying business and why you should consider a cash house buyer instead of going through the usual long house-selling process.

Companies that buy houses quickly are on the rise and you probably know a few people who buy houses fast. Are you ready to discover this real estate industry changer? We buy houses fast!

What are the pros of selling to a cash house buyer?

Selling to a cash house buyer has many advantages you’re probably not aware of. In this article, we’ll look at a few detailed ways selling your house fast can benefit you more than selling to an agent.

  • You can avoid foreclosure

Many people are looking for tips and tricks on how to avoid foreclosure. With a cash house buyer company, you can do just that. Being able to sell your house before it goes into a foreclosure is extremely rare and almost impossible when you’re selling to an agent. But with a cash house buyer, avoiding foreclosure is just one of many benefits you can get.

We have bought from a client that was facing foreclosure the very next day by getting the bank to agree to avoid having the house go to auction because we were going to buy it and then closed on the very next day. It’s fast, it’s safe and reliable. And we help you every step of the way.

  • We buy houses fast

It’s a fast process. Your house can be bought in just a few days, or, if you’re not ready yet, in a few months. It’s completely up to you. It’s an ideal choice for those who need to relocate quickly and don’t have time to go through the long process of selling to an agent. We are safe, reliable and completely trustworthy.

  • No hidden fees

We don’t charge fees. Not even for offering you real estate advice. You simply fill out a form, we call you back and it’s a done deal. Real estate business is fast and selling your house used to take a lot of time away from people – not anymore.

  • No repairs!

We buy houses fast and take them in any state – you won’t have to worry about making repairs or making sure your house is in a perfect condition. All those things just delay the selling process and that’s the last thing you want. We completely get it.

  • Absolutely no paperwork

We mean it when we say no paperwork. No bank loan approvals, no foreclosure, nothing. Just a quick and safe sale. Imagine never having to fill or scan piles of documents, get references, and deal with all unnecessary things again.

  • You decide when you want to sell your house

So, you need cash in 2 days time? No problem! Or do you want to take your time and can’t currently move out, but you’re still thinking about selling your house? Are you a veteran from San Antonio who needs to relocate? It doesn’t matter – we will cater to your needs. Try us!

So how safe is cash house buying?

we buy houses fast with cash

It’s natural for people to question a no stings attached process. I talk more about how to spot cash house buying scammers in my other articles, but you should know that scammers can be found in absolutely every profession. Cash house buying is completely safe if you know who to trust and how to spot scammers – there are as many scammers as there are legitimate companies. Always be careful and always be safe. Remember, there are people who use the popularity of the ‘we buy houses’ campaigns to take advantage of homeowners. Always be careful of ‘we buy houses’ scams!

How do you spot cash house buying scammers?

When researching the company, it’s important to check their credentials. Google their name beyond the first page and use different keywords to see what comes up.

A safe and legitimate company that buys houses quickly will always be ready to answer any questions you might have about the process. As us, they might even have a detailed blog with benefits on selling or buying your house.

The team behind Matt Buys Houses TX works hard to make sure you are provided with the best information possible- Sell your house fast and do it the right way.

What is the biggest benefit of buying houses fast with cash?

we buy houses fast for sale

We talked about the pros of selling to a cash house buyer. But the biggest benefit of people who actually buy houses fast is the freedom of living without a mortgage. Imagine no monthly mortgage payments, nothing that takes away a huge portion of your income. That feeling of being mortgage-free is absolutely incredible, and this why many people are buying houses with cash.

Buying a house with cash also benefits your credit score. Applying for various types of credit is easy when you don’t have mortgage payments holding you down.

We buy houses fast

We buy houses fast. It’s what I do. I’m ready to help you with anything you might need. My website can provide you with all answers you might have on the house-buying process, but we don’t just stop there. Thinking of becoming a landlord? Going through a divorce? Wondering how to stop foreclosure? Or just in need of simple advice on how to sell your house fast? All information is available to you for FREE.

And if you’re still not happy with what you find – give me a call. I’ll make sure all your questions are answered so you can sell your house for cash fast and safe.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.
Categories: We Buy Houses