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Arizona Divorce House Due Diligence

What is House Due Diligence?  ‘House Due Diligence’ is how a prudent homebuyer in Arizona goes into a purchasing situation, making sure the purchase of a particular home is a good idea. Every house will have its problems but it is essential to identify the problems before closing, or you may end up making a very costly mistake.

Having a home inspection is just one of the many House Due Diligence items that should be addressed during the divorce. However, there are many others such as a title search, a lien search, potential HOA special assessments and these are just the beginning of the list. Please contact us for the complete list.

We also suggest divorcing partners consider mortgage counseling, and home insurance counseling.

In Arizona Divorces, Less Than 3% of People Getting a Divorce Do This. Most Should!

87% of people interested in buying a particular home will have House Due Diligence performed on the property.  In a divorce situation, less than 3% of persons interested in keeping the house will go through the House Due Diligence process, and this can be bad news for the person keeping the house.

Appraisals and Mortgage Statements Do Not Equal Value

When determining the division of marital property most divorce attorneys work with appraisals and mortgage balance statements. However, this can be an inherently wrong decision. The condition of the house can positively or negatively impact the value of a home, and appraisals and mortgage statements do not determine the condition of the home or address needed repairs.

Here’s an Example of What Can Go Wrong

A husband and wife were divorcing. The wife requested to keep the marital home, she and her husband had lived in for more than 15 years. Over the last decade, the two had become rather complacent and did not maintain the home properly.

During the divorce process, the wife did not have any House Due Diligence performed, stating that she knew the house very well. The wife received the marital home in the divorce settlement.

Five weeks after the settlement was finalized a major storm revealed the roof of the house had developed leaks, and the leaks allowed mold to develop behind the walls. Not only did the woman need to replace the roof, but she also had a mold abatement issue that had to be addressed.

Proper House Due Diligence could have revealed the needed repairs, and the repairs could have been negotiated in the divorce. As it turned out, the problems were discovered once the house was solely in the hands of the wife, and the repairs which totaled more than $20,000 were completely her responsibility.

Get the Entire House Due Diligence List

There are several components of the House Due Diligence process, so please contact us to discuss the entire list.

Additional Reading, Click the Links Below: 

Keep the House If      Liens and Loans     Can You Refinance

WHAT WE DO:

We specialize in helping couples who plan to divorce avoid making expensive and long-lasting mistakes with the marital home.

We help attorneys, paralegals and mediators gather information and documentation to enhance their divorce case files.

HOW DO WE DO THIS?

We do this by helping people completely understand all of their options with the marital home including keeping the home, selling the home, mortgage and refinance options, and explaining why home due diligence, updated credit reports, and title searches are so important.

We explain to our clients how their decisions with respect to the home can impact their quality of life for many years to come.

We help our clients prevent credit damage and preserve their ability to buy a home in the future.  

With the information we can provide families can make better decisions and perhaps avoid making expensive and long-lasting mistakes.

Our initial pre-divorce consultations are provided at no charge.

 

HOW DO WE HELP ATTORNEYS AND MEDIATORS?

If you use appraisals in your practice to help determine the value of a home we can show you at least two gaps in the case file that can be detrimental to your clients.

We’ll explain why house due diligence is very important to determining actual value.

We’ll explain why a CLUE report should be part of your case file.

Our title company partners can provide title and lien searches on the property so no unexpected surprises surface during the process.

We can confirm equity in the house, check for mechanics liens and check to see if there is a home equity line of credit (HELOC) that has the potential of decreasing the equity in the home.

Our assistance helps you gather the details you need, creating less busy work for you and your paralegals.

The information we produce can bring about more cooperative clients.

 

WHY DO WE DO THIS?

We provide our initial pre-divorce consultations at no charge.

We provide our initial information for attorneys, paralegals and mediators at no charge.

We do this in the interest of consumer protection, helping our clients protect their credit ratings and preserve their future home ownership capabilities. 

If the couple decides to sell the marital home we hope that our information has been helpful and they will consider us for the listing and mortgage or refinancing of the home and/or new homes. 

We 1%

Less than 1% of all real estate agents, mortgage loan professionals, and title professionals have the Real Estate Collaboration Specialist - Divorce (RCS-D) designation. Agents without this designation could just be guessing how to advise you through this difficult time, we'll give you the facts that only professionals with our specialized training can provide.