Many parties going through a divorce also must face the impact of foreclosure or a short sale. Short sales of homes can now be done faster under new Treasury Department rules. If a person’s principal residence is worth less than the mortgage, he or she may be eligible for a short sale after becoming delinquent on payments or if default is likely. The loan must have been made before January 1, 2009, for less than $729,750 and the person’s monthly mortgage payment must be more than 31% of his or her gross income. Mortgage companies are not compelled to follow these rules until April 5, 2010.
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