Comments on: Stuck with Your House and Your Spouse: Divorce and Your Mortgage Part 1 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/ Mortgage Credit Problems: Helping You Find a Home Loan with Bad Credit Wed, 07 Jan 2009 10:30:30 +0000 http://wordpress.org/?v=2.3.2 By: Gina Pogol http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-82 Gina Pogol Mon, 14 Jul 2008 21:57:36 +0000 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-82 Yes, Mary, selling up and moving out is a great solution, but if the house is worth less than what is owed you have to be able to make up the difference. Lenders have shown themselves amenable to short sales (accepting less than the house is worth as payment-in-full)only if you are already behind on your payments or have a documented financial problem and can also find a buyer. If you can afford to keep paying they don't feel a burning need to help you out--especially when it weakens their own position (by taking one owner off the loan they increase the liklihood of default); it would be irresponsible to their shareholders to make such an agreement. Yes, Mary, selling up and moving out is a great solution, but if the house is worth less than what is owed you have to be able to make up the difference. Lenders have shown themselves amenable to short sales (accepting less than the house is worth as payment-in-full)only if you are already behind on your payments or have a documented financial problem and can also find a buyer. If you can afford to keep paying they don’t feel a burning need to help you out–especially when it weakens their own position (by taking one owner off the loan they increase the liklihood of default); it would be irresponsible to their shareholders to make such an agreement.

]]> By: Gina Pogol http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-81 Gina Pogol Mon, 14 Jul 2008 21:51:50 +0000 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-81 Hi Jan, Negative equity would be tallied up just like any other liability--car loans, credit card balances, and other loans all get thrown into the mix when a couple divorces. So if the couple owes $240k on a $200k house, each spouse gets $100k asset and $120k debt. Normally the judge allocates assets and liabilities between the spouses. But, again, creditors don't make their agreements with judges, they make them with the couple and if your ex-spouse defaults they do come after you if you are on the loan too. Hi Jan,

Negative equity would be tallied up just like any other liability–car loans, credit card balances, and other loans all get thrown into the mix when a couple divorces. So if the couple owes $240k on a $200k house, each spouse gets $100k asset and $120k debt. Normally the judge allocates assets and liabilities between the spouses. But, again, creditors don’t make their agreements with judges, they make them with the couple and if your ex-spouse defaults they do come after you if you are on the loan too.

]]> By: Mary http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-80 Mary Mon, 14 Jul 2008 21:34:52 +0000 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-80 Wow, this is an interesting post. Couldn't you just sell the house and everyone moves out? Wow, this is an interesting post. Couldn’t you just sell the house and everyone moves out?

]]> By: Jan http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-79 Jan Mon, 14 Jul 2008 21:31:22 +0000 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-79 "When there is negative equity, the spouse leaving owes the one who stays." How would you pay the ex what you owed? Would you just continue to pay on the mortgage or would you have to set up a separate agreement? Would the divorce judge be involved here? Thanks, Jan “When there is negative equity, the spouse leaving owes the one who stays.”

How would you pay the ex what you owed? Would you just continue to pay on the mortgage or would you have to set up a separate agreement? Would the divorce judge be involved here?

Thanks,
Jan

]]> By: Alan http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-78 Alan Mon, 14 Jul 2008 21:29:12 +0000 http://www.mortgagecreditproblems.com/blog/stuck-with-your-house-and-your-spouse-divorce-and-your-mortgage-part-1/#comment-78 This is a great topic, especially with the current market situation. I can't wait to read more on this. This is a great topic, especially with the current market situation. I can’t wait to read more on this.

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