Divorce decree and House foreclosure

[helodig]

What is the name of your state (only U.S. law)? Mi

Hi,
I need to ask your advice. Currently my ex-wife of 2 years is living in our jointly owned house. The court ordered she gets $1300 a month and half of my assets (401k, saving, etc), then after 2 years her alimony will drop to $800 in October. I have no minor children. She is required to maintain the 1st and second mortgage totaling $1500 with the Alimony payment until the house sells. She is now saying that she will be unable to maintain the payments once the alimony drops down to $800 in October, which will cause the house to go into foreclosure and ruin her and my credit. What legal action do I have? ANy suggestions.

[nextwife]

Return to court and ask to have the court order that the house be listed on the market now to be sold. Or that the house be turned over to you, if you can afford it.

[LdiJ]

Originally Posted by helodig

What is the name of your state (only U.S. law)? Mi

Hi,
I need to ask your advice. Currently my ex-wife of 2 years is living in our jointly owned house. The court ordered she gets $1300 a month and half of my assets (401k, saving, etc), then after 2 years her alimony will drop to $800 in October. I have no minor children. She is required to maintain the 1st and second mortgage totaling $1500 with the Alimony payment until the house sells. She is now saying that she will be unable to maintain the payments once the alimony drops down to $800 in October, which will cause the house to go into foreclosure and ruin her and my credit. What legal action do I have? ANy suggestions.

Can she maintain the payments when the alimony drops? Realistically? What hasn't the house sold?

There is of course legal action that you can take, but what legal action is appropriate or practical depends on the answers to the above questions...and perhaps answers to other questions as well.

If the house hasn't sold in two years, then there is a reason for that, and its not just the market.

[nextwife]

Originally Posted by helodig

What is the name of your state (only U.S. law)? Mi

Hi,
I need to ask your advice. Currently my ex-wife of 2 years is living in our jointly owned house. The court ordered she gets $1300 a month and half of my assets (401k, saving, etc), then after 2 years her alimony will drop to $800 in October. I have no minor children. She is required to maintain the 1st and second mortgage totaling $1500 with the Alimony payment until the house sells. She is now saying that she will be unable to maintain the payments once the alimony drops down to $800 in October, which will cause the house to go into foreclosure and ruin her and my credit. What legal action do I have? ANy suggestions.

Originally Posted by LdiJ

If the house hasn't sold in two years, then there is a reason for that, and its not just the market.

I don't remember reading that the house HAS been on the market during this time.

Oh, BTW, in my market, home sales are DEFINITELY heating up in the last 30 days.

[LdiJ]

Originally Posted by nextwife

I don't remember reading that the house HAS been on the market during this time.

Oh, BTW, in my market, home sales are DEFINITELY heating up in the last 30 days.

He said:

She is required to maintain the 1st and second mortgage totaling $1500 with the Alimony payment until the house sells.

I figured that if he wasn't complaining that the house wasn't on the market, that it probably was.

[helodig]

Originally Posted by LdiJ

He said:



I figured that if he wasn't complaining that the house wasn't on the market, that it probably was.

Correct, the house has been on the market the whole time and has had a few showings. But we live in Michigan. We have the highest unemployment rate in Michigan here. My issue is that my ex wants me to take the house but keep all or some of the alimony. If she volilates the signed agreement I described above, is she still entitled to alimony?

[mistoffolees]

Originally Posted by helodig

Correct, the house has been on the market the whole time and has had a few showings. But we live in Michigan. We have the highest unemployment rate in Michigan here. My issue is that my ex wants me to take the house but keep all or some of the alimony. If she volilates the signed agreement I described above, is she still entitled to alimony?

Completely separate issues. It is unlikely that the agreement says that you pay her alimony unless she defaults on the mortgage.

You have to pay the court ordered alimony. She has to do whatever the agreement says she has to do. If the two of you can reach an agreement on how to handle it, you are free to go back to court to ask for the decree to be changed. However, until the court has signed off on it, I would not make any changes in what you are doing.

If you can't afford to keep the house and/or if she is unwilling to let you, then you need to force a sale. Yes, it can be difficult when the market is down, but that can't be helped if neither of you can afford to keep it up. better to sell it and lose money than to have to deal with foreclosure.

[helodig]

Originally Posted by mistoffolees

Completely separate issues. It is unlikely that the agreement says that you pay her alimony unless she defaults on the mortgage.

You have to pay the court ordered alimony. She has to do whatever the agreement says she has to do. If the two of you can reach an agreement on how to handle it, you are free to go back to court to ask for the decree to be changed. However, until the court has signed off on it, I would not make any changes in what you are doing.

If you can't afford to keep the house and/or if she is unwilling to let you, then you need to force a sale. Yes, it can be difficult when the market is down, but that can't be helped if neither of you can afford to keep it up. better to sell it and lose money than to have to deal with foreclosure.

I believe I can afford the house if I refinance it, but also believe that I'm entitled to have some of the alimony she is entitled too. I have often though to just let her fail and then buy the house after she files to foreclose. I did leave her for cruel treatment I incurred from her. But she is a good mother to my adult children. So I want some of the alimony back for bailing her out.

[LdiJ]

Originally Posted by helodig

I believe I can afford the house if I refinance it, but also believe that I'm entitled to have some of the alimony she is entitled too. I have often though to just let her fail and then buy the house after she files to foreclose. I did leave her for cruel treatment I incurred from her. But she is a good mother to my adult children. So I want some of the alimony back for bailing her out.

Alimony is one thing...the house is another.

It is typical in a divorce that the party that has possession of the house is reponsible for making the payments on the loans regarding the house. They get that responsibility in exchange for getting to live in the house.

That normally has absolutely nothing to do with child support or alimony.

I think its quite possible that you would be allowed to take over the home if she cannot continue to pay the mortage. However its unlikely that it would change the alimony that you are due to pay her.

[mistoffolees]

Originally Posted by LdiJ

Alimony is one thing...the house is another.

It is typical in a divorce that the party that has possession of the house is reponsible for making the payments on the loans regarding the house. They get that responsibility in exchange for getting to live in the house.

That normally has absolutely nothing to do with child support or alimony.

I think its quite possible that you would be allowed to take over the home if she cannot continue to pay the mortage. However its unlikely that it would change the alimony that you are due to pay her.

However, there MIGHT be an adjustment in the property settlement to cover the home equity. For example, if she got the house and it had $50 K in equity, then he probably got $50 K in other assets to equalize that. He might have to give the other assets back.

As for alimony, you are right that the judge probably wouldn't order alimony dropped if he took over the house, but if the two of them can negotiate an agreement that involves him taking over the house and her getting less alimony, the court would probably approve it.

[mistoffolees]

Originally Posted by helodig

I believe I can afford the house if I refinance it, but also believe that I'm entitled to have some of the alimony she is entitled too. I have often though to just let her fail and then buy the house after she files to foreclose.

Bad idea.

It sounds like your name is on the mortgage. If the house is foreclosed (or even has payments late enough to make foreclosure a possibility), then your credit will be damaged, too - possibly badly enough to prevent you from refinancing.

[nextwife]

I handle bank house sales, across the Big Pond from Michigan,

If you've had few showings:

• don't keep the same realtor. A switch can make a difference.
• Review your price, reduce to compete with the CURRENT market.
• Examine your curb appeal and paint, put out planters of bulbs, remove any debris and think what you can do to make it WOW from the outside, so people want to see it. Place a cute bench (painted, maybe) and some colorful planters on an angel in the front. These days, you can pick them up on Craigs List
• Minor repairs, color scheme turning buyers off? Change it.

Homes DO still sell in this market.

[helodig]

Originally Posted by nextwife

I handle bank house sales, across the Big Pond from Michigan,

If you've had few showings:

• don't keep the same realtor. A switch can make a difference.
• Review your price, reduce to compete with the CURRENT market.
• Examine your curb appeal and paint, put out planters of bulbs, remove any debris and think what you can do to make it WOW from the outside, so people want to see it. Place a cute bench (painted, maybe) and some colorful planters on an angel in the front. These days, you can pick them up on Craigs List
• Minor repairs, color scheme turning buyers off? Change it.

Homes DO still sell in this market.

Actually I hope the house does NOT sell as I want to own the house. I have plans to put my kids through college and would love to have the house for them to stay at. I would like to Thank all of you for your wonderful advice. It sure helped me understand the legal aspect of it all. In the end we both must put our differences aside and take care of our sons. Again she is a good person who does NOT do drugs and works hard and cares deeply of our sons. She is just cruel to me, long story. (she admitted me to ECT 27 times- electro shock therapy) I just hope she feels the same way.

Thanks, Bill