divorce360.com provides help, advice and community for people
contemplating, going through or recovering from divorce and the issues around it,
including separation, divorce laws, spousal support and emotional issues.

causes-of-divorce  :: financial
I don't think it goes are enough to remove the pressures that couples are facing...

Mortgage Crisis and Divorce

Mortgage Crisis and Divorce

Real Estate: Housing Reform Package May Not Help Divorcing Couples


    The proposed housing reform package may offer some bail-outs for those who have experienced losses as a result of the downturn in the housing market, but it may not offer enough help for average families trying to get out from under overwhelming mortgages, especially if those families are trying to divorce and complete settlement negotiations.            

The Foreclosure Prevention Act of 2008, a bipartisan bill proposed by Senators Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) is intended to head off the nation’s housing crisis. However, divorce financial analysts question whether it goes far enough to help families avoid foreclosure, especially divorcing couples trying to hammer out settlements.            

The bill has yet to face a vote in the U.S. Senate. After that, a similar bill must make it through the U.S. House of Representatives. Some highlights of the Senate bill:

  • A $7,000 tax break, spread over two years, to homeowners who buy homes in or near foreclosure.
  • A tax credit for homebuilders who have experienced financial losses during the past two years.
  • A total of $100 million allocated to debt counseling to aid families in avoiding foreclosure.
  • Tax-free revenue bonds to help families refinance their mortgages.

But that might not be enough, said Stacy Francis, a certified divorce financial analyst and president of Francis Financial, in New York City. “It’s a great bill in the sense that it is moving in the right direction,” Francis said. “I have to say, though, I don’t think it goes far enough to remove the pressures that couples are facing like high mortgage payments and oppressive taxes.”      

Divorce is one of the greatest triggers of foreclosure, Francis said, so many of the families in dire financial straits may be those who are also trying to navigate divorce settlements. “It helps them give them the tools so they don’t necessarily have to forclose,” Francis said. “Sadly, it doesn’t do enough.”            

She said that one of the elements of the bill that was denied was modifying mortgages to allow for lower payments. She said that the provision was removed to avoid mortgage lenders’ responses of tightening standards for granting mortgages, but the caution seems misplaced in light of the fact that the lenders are already increasing their requirements. “The days of the 100 percent financing... those days are gone,” Francis said.  


Some of the most positive elements of the proposed bill for divorcing couples are the tax deductions for new property taxes because they will offer help after the negotiations are completed and the spouses are setting out on their own, Francis said. The same is true for the tax breaks for those who have bought foreclosed properties, she said, if those buyers are coming out of a divorce.            

Another positive allocation is to providing debt counseling services to those facing foreclosure, Francis said.  Divorcing couples whose homes may be near foreclosure can use the counseling to learn how to spend their money more wisely and to reprioritize where their money is going, Francis said. “I think anyone going through divorce, and anyone in general, can have better clarity about their expenses.”            

Page: 1 2 Last

divorce New this week::

Transition Institute: Telling Your Spouse You want to Split - Mental Health: The Dos, Don'ts of Telling Your Spouse You Want a Divorce


Your Kid Wants To Live With Ex - Tips On How To Cope If Your Child Wants To Change Homes


Living with a Habitual Liar? - Relationships: Four Ways You Can Tell if Your Spouse is Telling You a Whopper


divorce Community::
popular blogs
la robe de mariée et l'apparition des invités ont
Mariage Elisabetta Canalis: la robe de mariée et l'apparition des invités ont...read more 

en particulier lorsque vous avez signé Robe Amour
Vêtements élégants pour une cérémonie ou une occasion spéciale. Si vous...read more 

get/give answers
Up to 5% Free Bonus for buy Old School RS Gold in RSGOLDAZ
The new game DarkScape is playable now. DarkScape gold is on hot sale on...Read Answers/share yours 

Best Ways Help You Earn FIFA 16 Coins Fast
FIFA 16 is the latest access in the continued active authorization and it is as...Read Answers/share yours 

fifa 16 coins/accounts lunches at fifassd.com today, you can buying directly...Read Answers/share yours 

expert Q&As
Faith Therapy : Does a Separation Work?
My Husband and I Are Having Trouble. Is It a Good Idea for Us to Separate?...read more 

Stress Relief: Tips to Help after Separation
Mental Health: Overwhelmed by Changes in Household Routine. What Should I do?...read more 

About Law: Do Divorce Kits Work?
Legal: What You Should Consider When You Think About Divorcing Using a Kit...read more 

expand information center
divorce360.com's ecards

Find divorce professionals in your area

Find lawyers
Find financial professionals
Find coaches
divorce focused content ::
divorce most popular ::
1. Eager To Check Those Texts?
Think your Spouse is Cheating? Professionals Can Check Text Messages

2. 8 Things No One Ever Tells You about Divorce
Number Three May Surprise You

3. They Won't Leave? Now What?
You Want a Divorce, but Your Spouse Won’t Leave. Here’s How to Get 'em out

4. The Signs Of A Controlling Spouse
If Your Spouse Is Doing This, They Are Controlling

5. When Is a Marriage Worth Saving?
10 Things to Think About When Considering Whether to Stick with a Relationship