When you are going through a divorce, there are many things that you need to sort out and one of the first is how to handle your family home. It can be difficult to decide who will get the house or even who wants the house but there are certainly many emotions and feelings that are wrapped up in the home where you lived as a family.
The first question to answer is can either spouse afford the house on their own? If one person can afford to live in the home then it becomes their choice if they want it. If one spouse wants to keep the house as the sole owner, then they will need to refinance the home. This needs to be done so that the other spouse is removed from the mortgage. If both spouses can afford the home then they need to come to a mutual decision about who will keep the home. And if neither can afford the house on a single income then the house will need to be sold.
Selling the property might initially seem like the fastest and easiest way to settle things, but that is not always true. The first issue can be hiring a realtor. Both spouses need to agree on the realtor and on the plan for the sale of the house. Normally the biggest issue can be on the asking price. One spouse wants to hold out for a significantly higher sale price than the other. Getting top dollar is not a bad thing but you need to temper that with the length of time that it is going to take to sell the property. If neither of the spouses are living in the home while it is on the market then they are both contributing to the carrying costs. So the faster that the house is sold the faster they can quit paying for two homes and begin to move forward with building a new life.
If you are facing foreclosure as well as divorce then your stress is even greater. It is in your best interest to try to work together as much as possible to sell the house before it is foreclosed on. This could mean working with your lender to complete a short sale or selling to a real estate investor. But selling, even if you do not end up making anything on the sale other than paying off the mortgage, should be seen as a success. You will be saving your credit which will be very important as you search for a new place to live. Facing a divorce is never easy and it is even more complex and difficult when you need to liquidate a family home. But invest the time in learning about your options so that you can make a smart choice.