Due Diligence in Divorce Real Estate 

1. Establishing True Value - If an appraisal is obtained, there can be current market changes to consider that could impact a potential future sale of a property.  Unknown material issues such as a roofing issue, termites, or other maintenance issues could cause a reduction in value.  Creditors can also attach a lien to a property that would reduce the future proceeds upon sale.  

2. It is important to know the condition of a property before making a decision on whether to keep or sale.  Living in a property does not always demonstrate the condition.  There might be unknown factors that a home inspection would find.  If there is a costly repair that needs to be made, this needs to be factored into decisions on the property. 

3. Divorcing spouses need to be educated on the options of keeping a property and the consequences of transferring title between spouses.  There are underlying mortgage questions to be addressed and "what if scenarios" if a spouse takes title to a property and is unable to re-finance in his or her name.  There are other consequences to be considered if a divorcing spouse defaults on payments while the other divorcing spouse is still on the mortgage.  

4. It is critical to run a title search on a property to ensu
re there are no liens on the property that might be unknown.  

5. A mortgage professional can be of value to determine the ability of either party to re-finance a property or qualify for a new mortgage in his or her own name.  

These are a few examples of appropriate due diligence in Divorce Real Estate.  The objective is to be informed so good decisions can be made.  Overlooked issues with property during divorce can have severe and unnecessary financial consequences.  Sometimes well into the future. 
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