Short sale with different lenders for 1st and equity, getting divorced?
My wife and I are getting seperated, and eventually divorced. We own a home in CA that won't sell for what we owe on it. We also have an equity line of credit on the house through a different lender than our 1st. If we do a short sale and are getting seperated/divorced how will that affect us?
Steve:
Unortunately, you will both be held liable for the debt. Even if a judge rules that one party is responsible for the mortgage, etc. If it is not refinanced, the debt belongs to both of you.
If your lenders agree to a short sale, you credit will not be impacted as greatly and you both should be free of the debt. Sometimes the lienholders will require a repayment plan of a portion of their losses before they agree to the short sale.
Didn’t find what you were looking for? Ask a question!
More Q&A about Home Selling in Clayton
View all »
Ask a question
|
|
|
|
|||||||||||
|
|
|
|
|
|
Fair Housing and Equal Opportunity