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#388814 - 05/09/08 04:57 AM Settling a home with with zero equity
sean_U Offline
recently joined

Registered: 05/09/08
Posts: 2
Hello all,

First some background... I do live in California and separated from my wife two years ago. We are now going through the divorce and are doing it ourselves. My ex stopped contributing toward the house payments when she moved into an apartment 1yr ago. :mad: I now live in the house and have been trying to sell it for the last 6months. There have been no offers and now the house is valued under what our loan is for.
So my question, if one of us decides to keep the house, what would the buyout be? My understanding is that the settlement for buying out the other spouse would be half of the equity. With this crappy housing market, I doubt the house will be valued over the loan amount anytime in the next couple years. Would the law find that one person just signs over the house or is there a way to figure out a buyout?

Thanks.

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#388815 - 05/18/08 06:13 AM Re: Settling a home with with zero equity [Re: sean_U]
gettingby Offline
journeyman

Registered: 04/24/07
Posts: 89
If a professional appraiser (probably two, separate appraisers hired by each of you) confirm that there the value of the home is less than the outstanding mortgage balance, then there is no 'buyout', but you would still have to refinance the house in your name to get hers off of the mortgage. Can you afford to do it? You might have to put more money in just to pay off the original loan.

Or she could refuse, and wait for the house to regain value. That puts her credit at risk.

Would she agree to this?

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