When faced with difficult and high emotional decisions in real estate, it's important to have someone on your side who understands family dynamics, how to communicate and how to help the family through not just the transaction, but the emotional journey involved. As a trauma-informed Realtor, I bring unparalleled experience to help during times of crisis. What are the moments and what is important to know? Keep reading to find out.
DEATH
Death of a family member is always difficult, but when you are designated to make important decisions, there's things you need to know.
In Michigan, if the deceased had a trust, the documents should have implicit directions on who is allowed to legally administer the personal and real property. However, if there is no trust, the process will need to be administered through the court. This doesn't need to be a big formal ordeal. If the family agrees on who should be in charge you can file an informal probate with the county court. Most documents are available on your local county website. Once all the possessions and real estate has been distributed or sold, the probate can then be closed with the court. It's always a good idea to check with your local county rules and talk with an attorney if you have any questions.
DIVORCE
Making the decision to part with a partner is never easy. Being tied together legally with real property will need sorted out in court. In the event the home needs to be sold, whether neither party wants to keep it or they can't afford it individually, then a Realtor can be used to help with the sale. A Broker can provide what's called a Broker's Evaluation, which is similar to an appraisal but about 1/2 the cost to help the court decide what the value of the home is and how to split the equity fairly. If there is contention on who sells the home, the judge can appoint a Realtor to fairly represent the parties in the sale of the home with an unbiased approach towards both parties.
DEFAULT
Life happens. You get sick, you lose your job, you find yourself in an emergency and need to make the decision to choose which bills to pay. From my experience as a Bankruptcy paralegal, I want to emphasize a few things. 1) Always pay your secured debt first; typically that is your house and car. If you miss a mortgage payment, it can disqualify you from getting a new mortgage for a year. 2) If you find yourself getting behind in your mortgage, contact your lender. It is better to communicate with them and see if they offer any sort of forbearance programs to help you get caught up. If they don't hear from you, they'll assume you don't care and follow the process that leads to foreclosure. 3) If you get a foreclosure notice, contact a real estate agent right away. With home prices doubling or more in the last 5 years, it may be better to sell and take the equity to use as rent or purchase something smaller until you can get back on your feet. This will also keep a foreclosure from showing on your credit report.
DISASTER
Disaster can hit in a moment. Don't wait until it's too late to have a plan in place. I can't emphasize enough the importance of good insurance and to make sure you have enough to cover your rebuild cost. Currently in Michigan it is about $250/sq ft to rebuild your home. That means for a 1200 sq ft ranch you are needing at the minimum $300,000 for a basic rebuild. Special features such as solid surface counters, real wood floors, fireplaces, etc will need more insurance. Contact your agent to see where your home is valued and if you should up your values. When you are standing in front of your home, wondering how you'll rebuild, you won't care what your monthly or yearly payment was, you'll only care about getting things back as quickly as possible. It's important to note, if you are struggling with your insurance company, contact a PUBLIC INSURANCE ADJUSTER who will work on your behalf to get the money you are owed from your insurance.
DOWN-SIZING
If you feel your house is just too big, but you have 40 years of gathering possessions and memories, it can be difficult to know how to begin. An agent can help you line up a living estate sale, finding the next property and how to time the move to keep from needing to find a place in-between purchases. There is an easy formula and the world is open to options for you if you are ready to spend less time maintaining your home and more time living your life!
I have experience with all the situations above and would be honored to help you and your family navigate these difficult and stressful life moments.