An article in this week's issue of Newsweek reminded me of another problem brought on by the economy. Hard times can certainly impact marriages, but now they are even making divorce more difficult. Many couples can't unload their houses for enough cash to pay off their mortgages and lines of credit, and job losses make the situation worse.
If couples try to hang on to the house until the real estate market improves, they are bound together financially long after they choose to be. Also, if one of the two stops paying on the mortgage, it can cause future housing and credit problems for the other, especially now, when lenders are using higher qualifying standards. It is better to transfer the property to one spouse, if that person can qualify for a mortgage on his or her own. If neither can qualify, and more is owed on the house than they can sell it for, it's time to contact the lender about a short sale.
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