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A question for those who know banking (mortgages), real estate etc.

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A question for those who know banking (mortgages), real estate etc.

Old 05-30-05, 06:04 PM
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A question for those who know banking (mortgages), real estate etc.

Ok, I am currently going through a divorce that has been less than cordial most of the time. I am still living in the house of tension with my STBXW (soon to be x wife). I am wondering what my options are with my mortgage.

To make a long story not so long here we butted heads about which realtor to go through. I finally broke down after 5 weeks and went with the STBXW's. Well, in my not so humble opinion has listed the house way above it's value. I figured if it wasn't on the market it definitly wouldn't sell so might as well go with the stubborn STBXW's realtor. My goal is to get out from under the $1000 monthly payment. The way I look at it is if we sold it now for $15,000 less than we would in a year it's a wash since 12 months down the road we will have sunk another $12,000 in mortgage payments into it.

My goal is to not forclose on this, and my STBXW is not working and has dug us into quite a bit of cc debt. We are starting to drown and can't make all the payments any longer.

Can I go to the bank and offer to sell it back to them for what we owe or would that be the same as a forclosure? (This most likely wouldn't work anyway since the STBXW would have to agree and she wouldn't).

I am thinking of signing it over to her outright so I am not responsible, once they establish custody and child support (I believe will be set in July). That way I can move out and get a place of my own and move on with my life.

What other options would I have or am I stuck with a house payment. My STBXW has no motivation to sell at a lower price since she doesn't have to worry about our finances. She can sit around on her ass, not work and let me pay the bills (those that I can anyway). So for her to make a few extra dollars is all that matters, where to me getting out from under the monthly payment is all that matters. I would sell for what we owe, plus enough to cover the realtors fees just to be done with it.

I fear if I move out, the STBXW wouldn't make the payments and my credit would be destroyed real fast.

Any ideas for a poor otter?

Thanks,

DAC
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Old 05-30-05, 07:41 PM
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Get a lawyer.
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Old 05-30-05, 08:13 PM
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My wife said in the NYC area a lot of banks will put you in a special database if you want to walk away that is kind of like a foreclosure. It is so they can find a buyer and avoid foreclosure. Call your bank and ask.
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Old 05-30-05, 11:00 PM
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Originally Posted by Numanoid
Get a lawyer.
I have a lawyer. I just haven't asked him yet. Didn't think about it really.
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Old 05-30-05, 11:01 PM
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Originally Posted by al_bundy
My wife said in the NYC area a lot of banks will put you in a special database if you want to walk away that is kind of like a foreclosure. It is so they can find a buyer and avoid foreclosure. Call your bank and ask.
Is this special database a negative thing on your credit report? I would guess so. I am going to try to talk with my mortgage person tomorrow and see what she can advise me of.
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Old 05-30-05, 11:16 PM
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You should talk to the realtor who listed your house. If (s)he won't lower the ask, remind him/her that a realtor has to report *all* legit offers to you, the seller (and that you are a seller as well as your stbxw). Maybe you'll get an offer that is worth taking even if it's below the listed price. There will always be some lowball offers--just make sure the realtor reports them to you so you can accept if one is decent.

And do talk to your lawyer to clarify your rights in selling the house. Make sure the realtor knows who's boss.... gl!
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Old 05-30-05, 11:30 PM
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As far as your legal obligation goes, your mortgage company is not a party to the divorce. So, even if she is awarded the house AND the responsibility for the payment, until she refinances into her own name you are BOTH on the hook. "Signing it over" is only half the deal. The other half is her securing the financing on her own, and that's going to be tricky with her not working.

The technical term for giving the house back to the bank is called "deed in lieu of foreclosure". It's almost as bad as a foreclosure on your credit, not as bad as bankruptcy. It's probably not the best option, and you may be required to list the house before the bank will consider this option.

Have you had an appraisal done? If not, you should. That will give you a much clearer idea of the actual value and what you can hope to sell it for.
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Old 05-30-05, 11:36 PM
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The house is listed through a realtor, but I feel like they are asking too much. We have not had anyone interested in even looking in 3 weeks. I think the price should be dropped $10,000 to start with. Then we may have people at least interested in looking, until then, I just don't see that happening.
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Old 05-30-05, 11:40 PM
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Thanks, trixie, I was afraid of that. I don't see her being able to get financing even since I don't think child support counts as income. I figure next month at our hearing child custody and support *should* (fingers crossed) be hashed out and if so, I wanted to get the hell outta dodge. I am only staying in the house since my attorney suggested I do that for my stake in the custody of the children. If I moved out, it would give her custody by default and me visitation time, and I am hoping for joint custody.

I fear that the divorce will be final and I won't be able to move out since the house will still be up for sale because of the high asking price. That would royally suck. I am looking to move on with my life and can't because of my non-working STBXW and this house!
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Old 05-31-05, 10:26 AM
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Child support can be considered as income, it just doesn't *have* to be. The mortgage company will want to see proof of some regular payments, though, so in reality she won't be able to use it to refinance for quite a while.

In a slightly different direction...your attorney will probably tell you a bit more about this, but BOTH parents are expected to contribute financially to the support of the child. It won't make any difference to the amount of support you pay, since it works on a percentage, but it may be leverage for you to use in getting her to see she needs a job.
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Old 05-31-05, 11:21 AM
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She won't just take it, most likely. Especially since you are paying for it anyway. It is possible that she would if there is any equity to speak of, but more than likely she just wants you to keep paying for it.

I have had houses for sale that are ordered by the court. Got offers of full price, which then never got signed by the wife because she was a bitter bitch who just wanted to use it as leverage.

See if you guys can't figure something out. The best may be to have your lawyer work out a way where you walk away from the house.
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Old 05-31-05, 11:38 AM
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Originally Posted by DAC
Is this special database a negative thing on your credit report? I would guess so. I am going to try to talk with my mortgage person tomorrow and see what she can advise me of.
probably not since it never goes to foreclosure. Banks don't want the hassle of a foreclosure and so they found a way to get owners to sell their home to avoid the process.
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Old 05-31-05, 11:52 AM
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Yeah, I stopped at the bank and discovered that child support can be counted as income. They also told me about a Rural Housing mortgage that can be had for no money down (they make the loan for more than the purchase price to roll in the closing costs and taxes etc. There also is no PMI)

My wife doesn't care. Nothing has changed for her. She sits at home on her ass and lets me pay for everything. I want out of the house/out of the payment. Once they establish what custody and child support is I think I will move out and then she will be on her own. The only problem is that she will most likely not make the payments and drag my credit into the gutter.

Last edited by DAC; 05-31-05 at 11:54 AM.
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Old 05-31-05, 11:58 AM
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Originally Posted by DAC
Yeah, I stopped at the bank and discovered that child support can be counted as income. They also told me about a Rural Housing mortgage that can be had for no money down (they make the loan for more than the purchase price to roll in the closing costs and taxes etc. There also is no PMI)

My wife doesn't care. Nothing has changed for her. She sits at home on her ass and lets me pay for everything. I want out of the house/out of the payment. Once they establish what custody and child support is I think I will move out and then she will be on her own. The only problem is that she will most likely not make the payments and drag my credit into the gutter.
Which is why you need to make the payments directly as part of the support payment. Or get it out of your name. Make sure your attorney does that.
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Old 05-31-05, 12:08 PM
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DAC: Who is on the note? Is the note assumable? Who is on the deed?
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Old 05-31-05, 12:16 PM
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Good idea kvrdave. I will do that for sure.

The Bus, We are both on the note and deed.
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