In over our head with our house and settlement

[lawgirl]

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

My husband and I own a house. We owe more money than the house is worth and don't have extra cash to pay the balance due if we sell for a loss.
My husband is currently living with his girlfriend and her children. We have one child together and are currently under temporary orders. He has to pay me $900 in spousal support and $400 in child support. My mortgage is $1400 and I make around $20,000 and he makes around $39000. The temporary orders say that I am responsible for the mortgage and all the payments, but what do I do if my husband doesn't have to continue to make the $900 payments after the divorce is final? How will the court deal with our house? Neither one of us can afford it on our own and I know that my husband can't afford to pay $1300/mo to me b/c he only brings home $2200 a month.

Thank you.

 

[seniorjudge]

And what is your legal question for us?

 

[mistoffolees]

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

My husband and I own a house. We owe more money than the house is worth and don't have extra cash to pay the balance due if we sell for a loss.
My husband is currently living with his girlfriend and her children. We have one child together and are currently under temporary orders. He has to pay me $900 in spousal support and $400 in child support. My mortgage is $1400 and I make around $20,000 and he makes around $39000. The temporary orders say that I am responsible for the mortgage and all the payments, but what do I do if my husband doesn't have to continue to make the $900 payments after the divorce is final? How will the court deal with our house? Neither one of us can afford it on our own and I know that my husband can't afford to pay $1300/mo to me b/c he only brings home $2200 a month.

Thank you.

You have a debt which you are responsible for paying. The court isn't going to be concerned that you bought more house than you can afford.

It's really quite simple. If he doesn't pay the court-ordered amount, you file for him to be held in contempt. SInce it's child support, you also have the option of turning it over to the child support collection agency in your state. In most cases, that's the easiest way to handle it.

If the husband's support payments are reduced in the final settlement, then they're reduced. You have to live on what you make and the court-ordered support payments.

The final order for the home could very well be different from the temporary order, but if it continues to say that you're responsible for the mortgage, then you're responsible. If his name is still on the mortgage, he would be responsible to the mortgage company if you don't pay, but then he'd sue you for contempt. If his attorney is any good, they'll insist that the home be refinanced in your name or sold.

If you are unable to make the payments, then the home will be sold for whatever the market will bring. If you lose money, you lose money - and it will be up to you to eventually pay the bank off. You could ask the bank to accept a short sale (they take whatever you can get for the house and let you off the hook for the rest), but they have no obligation to do so.

 

[LdiJ]

You have a debt which you are responsible for paying. The court isn't going to be concerned that you bought more house than you can afford.

It's really quite simple. If he doesn't pay the court-ordered amount, you file for him to be held in contempt. SInce it's child support, you also have the option of turning it over to the child support collection agency in your state. In most cases, that's the easiest way to handle it.

If the husband's support payments are reduced in the final settlement, then they're reduced. You have to live on what you make and the court-ordered support payments.

The final order for the home could very well be different from the temporary order, but if it continues to say that you're responsible for the mortgage, then you're responsible. If his name is still on the mortgage, he would be responsible to the mortgage company if you don't pay, but then he'd sue you for contempt. If his attorney is any good, they'll insist that the home be refinanced in your name or sold.

If you are unable to make the payments, then the home will be sold for whatever the market will bring. If you lose money, you lose money - and it will be up to you to eventually pay the bank off. You could ask the bank to accept a short sale (they take whatever you can get for the house and let you off the hook for the rest), but they have no obligation to do so.

I agree with most of this, although, these days most banks are willing to accept a short sale, because its less costly to them than a foreclosure.

I think that the end result of this is that the home is going to have to be sold in a short sale. I don't see any other way around it. Clearly the husband can't continue to pay 1300.00 a month in combined alimony and child support, and clearly the wife cannot afford to refinance the home or make the payments on just her income plus child support.

However, I suspect that his child support will end up being a bit more than 400.00 a month.

 

[MTHRaye]

OP google Short Sale Specialist + your area. Talk to several and see who is the most knowledgeable with your mortgage company that has a proven success rate in getting the banks to accept a short sale. They will be able to get all the paperwork together that you need to present to the bank. Preferably a real estate agent with access to mls so they can show the bank other comparable sales to justify your need for a short sale.

Seniors, since there will likely be a deficiancy judgement from the bank for the remaining balance of the mortgage, can OP ask judge to make both parties responsible for that deficiancy debt incurred through the short sale or will OP get stuck with that?

 

[mistoffolees]

OP google Short Sale Specialist + your area. Talk to several and see who is the most knowledgeable with your mortgage company that has a proven success rate in getting the banks to accept a short sale. They will be able to get all the paperwork together that you need to present to the bank. Preferably a real estate agent with access to mls so they can show the bank other comparable sales to justify your need for a short sale.

Seniors, since there will likely be a deficiancy judgement from the bank for the remaining balance of the mortgage, can OP ask judge to make both parties responsible for that deficiancy debt incurred through the short sale or will OP get stuck with that?

Assuming that they're equal owners in the house, the debt should apply to both of them. I don't see why one party would get off scot-free.