Posted on: 13th Jul, 2010 09:17 am
My husband and I are starting the divorce process. With the way the economy is right now, we can't sell our house for what we owe on it. Neither one of us can afford the house on our own. What should we do?
Hi kare1202
Although you are divorcing you need to keep in mind that what is the current scenario as far as mortgage is concerned.It would be a wise decision to act as a 'professional' despite of your personal relations.(which are not very healthy)
I will advice you to set up a trust and beneficiary could be both of you.both will pay the mortgage payment on co-owner basis to whichever percentage you can finalize after discussing mutually.
Once the market condition improves you can sell off the property and get free from the obligation.
If emotions are taking toll on your financial matters, I think you will never be able to achieve financial freedom.
DIPA.
Although you are divorcing you need to keep in mind that what is the current scenario as far as mortgage is concerned.It would be a wise decision to act as a 'professional' despite of your personal relations.(which are not very healthy)
I will advice you to set up a trust and beneficiary could be both of you.both will pay the mortgage payment on co-owner basis to whichever percentage you can finalize after discussing mutually.
Once the market condition improves you can sell off the property and get free from the obligation.
If emotions are taking toll on your financial matters, I think you will never be able to achieve financial freedom.
DIPA.
Hi kare,
Both of you can list the property in the market and try to sell it off. Once the property is sold off, the sale proceeds will go towards paying off the mortgage dues. The deficient amount should be paid by both of you out of your pockets. If you don't do so, then the lender can send the account to collections and the collection agency will harass you for payments.
Take care.
Both of you can list the property in the market and try to sell it off. Once the property is sold off, the sale proceeds will go towards paying off the mortgage dues. The deficient amount should be paid by both of you out of your pockets. If you don't do so, then the lender can send the account to collections and the collection agency will harass you for payments.
Take care.
One thing that most realtors don't mention is that selling the property for less than what you owe (called a short sale) often has IRS tax implications. For example, lets say that you owe 350K on the house but it only sells as $175K. The other $175K counts as *YOUR INCOME* for tax purposes. And to make matters worse, declaring bankruptcy doesn't clear up tax debt.