Underwater home, ex-wife in the home with kids. Options?

Asked by ARose2001, San Diego, CA Fri Feb 1, 2013

My fiance and his ex-wife are divorced...and she still lives in the home they had together with their 5 children, however, she is NOT on the mortgage, but she IS on the Deed. He has done many modifications. Can they assume the loan? What are his options?

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Edith Karoli…, Agent, Winnetka, IL
Sat Feb 2, 2013
this is not a question for Realtors, you must consult with an attorney who must have access to all the
details of the situation....
Realtors can NOT give legal advice...
Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

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0 votes
Bob Brubaker, Agent, Lake Worth, FL
Fri Feb 1, 2013
Options Are Legal and Practical ! The Divorce " Settlement " apparently
hasn't settled everything! Best to Have an attorney lay out the Legal , then
a skilled local Title Agency that does short-sale representation the practical.
Alot will depend on which lender is involved, Payment history, and
possible remedies with "title" . Options will emerge!
Some your fiance maybe unwilling to access! - due to the consequences
to the other side!
Once you have these perspectives A skilled Local Agent is your " Ball Carrier "
if need be. Best of Luck to all involved. Keep on this- Time never
helps in such circumstances!

Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference:  http://pbc-realcam.com
0 votes
Ann Ryan, Agent, Doral, FL
Fri Feb 1, 2013
Okay, now it becomes clear... what you need to do is ask the bank to modify the loan to remove your husband from the note. Provided his name is removed from the note, he should remove his name from the deed. Hopefully, things are amicable between them, if not, you might need to work with the court to get this done.

Or if the ex-wife wants to sell/move out of the home, then it may be possible to do a short sale. In which case I would want to see both their names on a listing contract. If one or both of them has significant assets, they may need to pay some or all of the difference between the price received on the home and the outstanding mortgage.

If you send me the address, I'd be happy to run the comparables for you, and give you an idea on what the property is worth.
0 votes
Preston Ware, Mortgage Broker Or Lender, Altamonte Springs, FL
Fri Feb 1, 2013
I would say it is up to the existing servicer. If she has steady income I would think the servicer would be open to it rather than having another short sale on their hands. Since they have already modified I wouldn't be surprised if she didn't have steady income.
0 votes
You hit the nail on the head Mr. Ware! The only steady income she has, is the child support he pays every month.....
Flag Fri Feb 1, 2013
ARose2001, Home Seller, San Diego, CA
Fri Feb 1, 2013
I just clarified with him what it said in his divorce paperwork, and it states that she would be responsible for paying the mortgage, but the minute she stops they would do a short sale. Can he short sale to her?
0 votes
Walter Wilde, , 33409
Fri Feb 1, 2013
Loan assumption is the lenders choice. Most will not. Either short sale or walk away and let the foreclosure process take over.
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Maria Cipoll…, Agent, Coral Springs, FL
Fri Feb 1, 2013
His best option will be hiring an attorney to review the divorce agreement and advice him properly.
Normally loans are not assumable, so I do not think that this is an option.

Best of Luck,

Maria Cipollone

Century 21 Tenace

0 votes
Ann Ryan, Agent, Doral, FL
Fri Feb 1, 2013
What is in the divorce decree? If he is required to pay the mortgage, it doesn't matter that the home is underwater.

If your fiance is unable to make the payments, then he should try to petition for a change in the divorce settlement.

And you know what comes next, this isn't a real estate question, it's about divorce, you should be talking to a lawyer, not a real estate agent.
0 votes
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