Selling a house in divorce in Wilmington North Carolina adds to the often stressful, frustrating experience of even the best divorces.
When the two parties own North Carolina real estate in common and are selling a house in divorce in North Carolina, whether it’s a marital home, a commercial business, or some other type of mutually-owned property, selling property as part of a divorce is one of the biggest worries most divorcing couples face – after the impact of the split on kids and finances.
If you are going through a split, the following tips can help you understand what to expect when selling a house in divorce in WilmingtonNorth Carolina.
When Both Parties Want To Sell The North Carolina House
Under the best scenario, the couple has built up equity in the property and both want or need to sell easily and quickly.
In this case, the process of selling a house in divorce in is relatively straightforward.
If neither spouse wants to stay in home, or if neither can afford to buy out the other, you can put the property on the real estate market and try to get the best price for it, depending on the local market and current condition of the property. Keep in mind that before the sales proceeds can be divided, you’ll have to pay off the lender (mortgage), any equity line or second mortgage, and the real estate commission fees. You’ll also have to pay any capital gains tax that might apply if you been in the property in a short period of time. These expenses are one disadvantage of selling, especially if market conditions aren’t good for sellers.
But there are advantages, too. Both spouses get money to start over, and it may help you make a clean break.
The selling process…
Once you’ve decided to sell, you’ll be faced with a lengthy and detailed process that involves a number of house projects. Each of these projects takes hard work in the best of times, and the emotional upheaval that comes with divorce doesn’t make them any easier.
Divorcing couples who are selling a house in divorce in Wilmington need to agree on a listing price for the property. They also must agree on a schedule for showing the home and determine who is going to pay what costs involved with the sale. A local realtor can give you some good insight on current listing price, again depending the current state of the market.
Then, couples who are selling a house during a divorce need to decide whether the proceeds will be distributed or placed in an escrow account.
Placing the proceeds into escrow can help avoid problems later, such as paying capital gains taxes on the sale after the divorce.
NOTE: Because North Carolina is a Trust Deed State, attorneys or lenders may handle closings, and corporate agents issue title insurance. Conveyance is by warranty deed. Deeds of trust with private power of sale are the customary security instruments. Foreclosures are non-judicial, with a 10-day redemption period following the sale. The entire process takes between 45 and 60 days. North Carolinians use ALTA policies, but these require an attorneys opinion before they’re issued. Buyers and sellers negotiate the closing costs, except that buyers pay the recording costs, and sellers pay the document preparation and transfer tax costs. Property taxes fall due annually on the last day of the year.
Selling Your Wilmington House in Divorce At A Loss
In some instances, selling a North Carolina house during a divorce at a loss is the only option if the divorce is disputed or if one of the parties wants to stay in the home temporarily after the other party moves out.
NOTE: Chief Real Estate Solutions LLC specializes in helping homeowners out of sticky situations just like this. We can make you a fair all-cash offer on your house or commercial property that you and your spouse can consider, so you both can move on more quickly and not have the house being a burden for months and months down the road. Reach out to us by calling us at 910-370-1206 or submit your info on this website.
Both sides need to agree to split the cost of an eventual sale and any profits or losses incurred. If selling the house isn’t possible, one option is for the couple to keep the home as a rental property and be co-landlords.
But if that’s the case, both parties will need to continue to interact with each other in order to manage the property – something many divorcing couples are reluctant to do.
In this instance, one person may serve as the main landlord, handling all the management responsibilities in exchange for a larger share of the profits to compensate for their time and effort.
Call Chief Real Estate Solutions LLC at 910-370-1206 to find out the best strategies for selling your house in divorce in Wilmington NC.
When One Party Wants to Stay in the Home
If the divorcing couple has built up equity in the North Carolina home and one party wants to remain in the home after the divorce, one option is to refinance the home in the name of the person who will be living there, rather than selling the home during the divorce.
The home will then be appraised and the party who is staying will pay an “equalization payment” to the other party that is equal to half the equity.
For example, if a divorcing couple owns a home they bought for $80,000 and there is still $20,000 left on the mortgage, both parties would be entitled to $30,000 in equity when selling the house during the divorce in Wilmington North Carolina. The couple could then secure a $50,000 cash-out refinancing in the inhabiting spouse’s name.
If the party staying in the house can’t qualify for a loan in this amount on their own, the refinancing could be obtained in both parties’ names. After the divorce, the loan can be restructured – as long as they can document 12 months of cancelled mortgage checks from the inhabiting spouse’s account – and the party who has moved out of the home can then fall off both the loan and the title after selling a house in divorce. Call us 910-370-1206 to learn more about how this process works.
When Divorcing Parties Can’t Agree to Selling The House
The worst-case scenario when selling the house while in a divorce in Wilmington is when one party wants to keep the home and the other wants to sell, or if both want to stay. At that point, the court may have to intervene.
This is likely to leave both parties unhappy and the legal fees will often eat up any of the profits from selling a home in divorce in WilmingtonNorth Carolina.
Want to learn more about selling a house in divorce in Wilmington North Carolina?
At Chief Real Estate Solutions LLC we buy houses in and around Wilmington and can make you a fair all cash offer on your house. Give us a try. There is no obligation, no hassle, no pressure.