tkn4lif
recently joined
Reged: 07/17/12
Posts: 1
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Hi All, I am new here and need advice.
Sorry this may be a little long.
Here goes:
My EX and I have been divorced since July 2010. In the divorce decree it stated that he could either buy me out by January 2011 or the house would be put up for sale. (Pretty cut and dry I know) However, late in the Fall of 2010 he asked if he could have more time because financially he could not afford to refinance in just his name, etc. It is now July 2012 and I am ready to sell the house. (Get it out of my name) but I also want my fair share of equity in the home.
He moved out of the home at the end of 2010 and we have had a renter in the home since who pays exactly what the mortgage payment is each month.
Our loan is around $128,500. He said he was only approved for $128,000. AND he says he is not going to agree to sell it. The market is not good (still) and I hade a Comparative Market Analysis done on the house based on home sales in the area and they said if I wanted to sell it would be best to list around $123K. Both options leave me with nothing.
When we bought the house my parents gave us $30K to renovate the home.
I feel I am entitled to get some money if he does buy me out since he is getting to keep the home.
I am considering proffering him to buy me out at $128K, having him be responsible for a credit card (balance a little over 2K) we still have together and giving me 10K.
What do you think?
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Renny
addict
Reged: 09/24/11
Posts: 479
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As I see it, there is no equity in the home and the $30k is gone. I would have him refi and have your name removed from all debt instruments and the deed. I don't see that his getting to keep the home when he is refinancing 100% of it is a gain on his part. You on the other hand are freeing yourself from a potential liability and a lingering financial entanglement with him if he refinances.
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javajunkiee
Carpal \'Tunnel
Reged: 06/01/08
Posts: 3158
Loc: SC
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I think you can ask for 15k but that you're out of luck if you push a refi right now.
There isn't any money to pull from the house whether you're entitled to it or not. This economy has killed the equity settlements in so many divorces its not even funny and there doesn't appear to be an end in sight.
You said you did a comp on the house and came up with 123k. When he goes to refi the appraisers and banks will also do a comp and could come up with even less. So his income may get him approved at 128, but the house is only worth 123. A bank will not finance 128.
Also keep in mind that he would need stellar credit to pull a loan-to-value close to 100%, or he's going to need to put down some cash to get the refi done.
You're going to be stuck to this house and him until he can refi for what the house is worth.
You can either try for the cash payout and keep status quo on the house, or you could try and get him to put the cash you want from him into paying down the mortgage instead, so he can actually refi it.
One more thing: if he loses the tenant, will the two of you be able to keep up the house payments? Some people don't know that the bank doesn't care about what the divorce settlement says; the bank just wants their $$ and if they have to ding your credit and sue you for it if he defaults, they'll do that too. Just something to think about in case you didn't already know.
Good luck.
--------------------
Marriage doesn't come with a money-back guarantee.
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finz
Carpal \'Tunnel
Reged: 06/17/08
Posts: 6481
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Your house is worth less than you put into it. That's not uncommon nowadays. It does mean there is NO equity, so there's nothing to split off the sale of the house....unless it's the additional $5,000 loss if the value is determined to be %123,000 instead of $128,000.
The $30,000 gift from your parents became marital property when you sunk it into the house. It is GONE.
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