Posted on: 06th Aug, 2009 06:59 am
my ex-wife and i bought a house in virginia beach in 2005 on my income alone. she was not working at the time. the sale price was $249,900. we took out a 5/1 arm interset only first mortgage for $199,900 and a fixed rate second for the remaining $50,000. we refinance the second mortgage into a home equity line of credit in early 2006 to pay off some credit card debt. this action brought the balance to $65,000. her name was never on the first mortgage, but has been on the 2nd since it re-fi'd into the heloc in 2006. we separated shortly after and we were officially divorced in the spring of '07. our divorce decree stated that i was to have her removed from the heloc and that "time was of the essence" in doing so. in november of '06 i transferred (i'm active duty navy) and was forced to rent the house out. i had the same tenants until june of this year, but now the house is empty. i'm falling behind on the first mortgage, but have been keeping current with the heloc. i have been unsuccessful in removing her name from the heloc and went to court regarding the matter a few months ago. i now have until november to get it removed either by re-financing or selling. my realtor/property manager suggests a short sale and adivses to list the house at $229,000. i owe roughly $263,000. my ex-wife refuses to sign the short sale paperwork cause she doesn't want the impact on her credit. understandable, but i tried to explain to her that if there's no short sale, and i sell the house for what i can get, there will still be a balance on the heloc. the first mortgage will be paid off first, then there is commission to the agent, and then a balance on the heloc left over. would i still be able to make payments to the heloc as if it were a regular credit card? and if so, i tried to explain to my ex that it would take me at least 7 years to pay it off, which means it still remains on her credit report until i pay it off. what can i do? i feel like the short sale is my only option, but i can't get her to play ball
danny i know you are anxious, but please don't post the same topic on 4 different occasions. these forums are all inter-related, but you're likely to receive wildly different answers to each of your posts. others will read these and get equally as confused as you are about to be.
"i now have until november to get it removed either by refinancing or selling." is this a court order? if it is, then your former wife has to comply with that order as well, inasmuch as she is an owner of the home...right? if a short sale is the only way in which you can sell the home, that's that...right?
someone needs to have a frank discussion with her and bring her to reality, it would seem. does she have a lawyer? do you? if yes to both, can't the two lawyers hammer this point home to her?
your question about repaying the heloc as if it were a credit card is one you'd have to broach with the creditor, but i'm sure they'd be happy to arrange that. otherwise, with a short sale, they're swinging in the proverbial breeze. and your former wife is better off having the loan be reported on credit for 7 years more with a good payment record than the other alternative.
i hope this is helpful.
"i now have until november to get it removed either by refinancing or selling." is this a court order? if it is, then your former wife has to comply with that order as well, inasmuch as she is an owner of the home...right? if a short sale is the only way in which you can sell the home, that's that...right?
someone needs to have a frank discussion with her and bring her to reality, it would seem. does she have a lawyer? do you? if yes to both, can't the two lawyers hammer this point home to her?
your question about repaying the heloc as if it were a credit card is one you'd have to broach with the creditor, but i'm sure they'd be happy to arrange that. otherwise, with a short sale, they're swinging in the proverbial breeze. and your former wife is better off having the loan be reported on credit for 7 years more with a good payment record than the other alternative.
i hope this is helpful.
Thanks for your reply George. I apologize for the numerous posts, I was a little confused as to where they were going to and I originally posted a question under an incorrect email.
Technically, my wife is not an owner of the home. She was removed from the deed almost 3 years ago in lieu of $5000. She hasn't lived there longer than I haven't lived there and like I said before, she is on the HELOC and the HELOC only. I guess I will have to contact the court and inform them of the situation to see what they recommend. Trying to get my ex to cooperate with anything since the divorce has been next to impossible. Thanks again!
Technically, my wife is not an owner of the home. She was removed from the deed almost 3 years ago in lieu of $5000. She hasn't lived there longer than I haven't lived there and like I said before, she is on the HELOC and the HELOC only. I guess I will have to contact the court and inform them of the situation to see what they recommend. Trying to get my ex to cooperate with anything since the divorce has been next to impossible. Thanks again!
