Article #6 from Foreclosure Articles
by David Whisnant Editor, Real Estate Investor, and Attorney

Foreclosures:

Foreclosures And Divorce


If you spend much time going after foreclosures, you will often find that a divorce was involved somewhere along the line. It may have been a year or ten years before, but ultimately it has lead to foreclosure.

Part of being successful in foreclosures is learning how to deal effectively with common difficult situations. This type of information is taught in my real estate and foreclosure course.

Typically, foreclosures involve a situation where the wife winds up with the house in the divorce settlement. The settlement, which is public record, outlines what happens to the marital home. It may say something like: “Husband agrees to transfer title and all interest held by quit-claim deed to Wife for the property at 1234 Bliss Lane.” Often, the husband never deeds the home to the wife, even though the divorce decree states that he will do so within a reasonable amount of time.

Technically, both husband and wife are still on title.

Let’s look at how a foreclosure deal like this goes down. In the foreclosure notices, you saw that the loan had both husband and wife listed. You met with the wife and she told you that she was awarded the property in the divorce. You thus know that you don’t need his signature on the contract, as he has no interest in the foreclosure property according to the wife. You sign the foreclosure contract with the wife. Then, however, you learn that the husband is still on title when your closing attorney conducts the title search! Problem? Could be.

FORECLOSURE TIP: Real estate attorneys and title companies typically will run the title a few days before the closing. If there is a problem, that does not give you much time to solve it before closing. I suggest that if you have a


Foreclosures |  Page 2

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