Post # 1
ok. long story. FI was married before. they had a house. she was in charge of everything. when she left him she didn’t want the house so she had her lawyer make up divorce papers that state he gets the house and is charge of everything and has to refinance in 60 days and keep the house in marketable condition if he does not refinance. FI was devastated and signed them without consulting anyone.
the divorce was final in october 2010. so it was 60 days from then. FI has not been able to refinance for a slew of reasons. she calls and talks to him and wants to know when it’s going to happen blah blah blah but has never done anything beyond that.
the papers state that if he does not refinance within that time frame she has the right to place the house on the market with a realtor of her choosing while he maintained the home and mortgage payments. if the house didn’t sell in 6 months he would move out and turn the house over to her and she would then deal with it.
the deadline has come and gone.
my questions is this: would this document still be upheld since neither adhered to the guidelines and timeframe?
is there a time limit that the divorce decree is enforced?
what would happen if we moved out and turned the home over to her now? we don’t want to stay in it while she would have access to us and our lives.
the home isn’t worth as much as they owe on it. the neighborhood is FULL of homes that have been foreclosed on or have been on the market for years. the home behind us has been for sale the entire time FI has lived here, which is about 4 years. there are at least 30 homes in our division that are and have been on the market. this tells us our home would not sell, and certainly not for what is owed on it.
any insight or answers you can give would help me out so much.
i realize this is what you get paid for but i would really really appreciate any guidance.
thank you so much in advance.
Post # 3
I’m not an expert but I would suggest that he tries talking to the bank about a short sale. Unless they qualify for one of the government loan assistance programs, the bank might not want to refinance or be able to refinance since they owe more than it’s worth. I would look into getting rid of the house any way that you can. If it ends up as a short sale or foreclosure and the two of you want to buy a house later, just put the loan and home in your name.
Post # 4
I Am not an expert, but it might be time to just walk away from the home. We have debated this as wecould by an equitable house at the same time and be done paying it off before weseven out on our home. It sucks but our bank won’t work with us either. Yes, we could keep it up but it may not make sense to.
Like pp said buy a new house in your name only.
Post # 5
something i didn’t mention. FIL’s bought a house, a nice 1920’s double that came up for sale a few doors down from them. they bought it for us and FBIL to live. they paid off their house not too long ago and an opportunity came up. a dear friend and neighbor passed last year and his family wanted the house to go to someone who wouldn’t become a slum lord.
so we have a house. that will cost us less than half of what we pay monthly now. the only work it needs is some cosmetic updates.
FI is freaking out about walking away from this house, no matter what anyone else says. he’s afraid of what will happen.
we can move into this new home immediately, or as soon as i remove the awful old carpet and wall paper.
Post # 10
If your house is Indiana (guessing from your profile), be careful about trying to have a short sale or a forclosure. Indiana is a “deficiency state”, or a “judicial forclosure state”. That means, for example- if you owe $200K on the house but then when the bank forcloses and resells it for $150K (if that is all they can get), then they can sue your FI for the difference- 50K in this example. So he would not be off the hook for the money and then would have ruined his credit as well. Not all states have this law- so if the house is not in Indiana- you may be fine. You REALLY shoud meet with a lawyer.
Post # 11
thank you so much. we are meeting with a lawyer this week.