Real property and minor children

[Ren225]

What is the name of your state? Pa

Is it true that during divorce precedings, as far as real property, if there are children involved, the court could favor their not being moved out of the family home which may mean that the family home will not be sold until the youngest child is 18 years old?
My stbx wants the house, it is way over mortgaged , we will both have a considerable amount of debt when sold. We are both on the Deed and mortgages. She cannot achieve a refinance soley in her name. If she is allowed to keep the house and my name has to stay as is on the mortgages till my youngest turns 18 my debt to income ratio is going to hurt me financially very badly.
Is this actually something that could really happen?

[Ohiogal]

In your case the house will be ordered to be sold by the court if you request it.

[LdiJ]

Originally Posted by Ren225

What is the name of your state? Pa

Is it true that during divorce precedings, as far as real property, if there are children involved, the court could favor their not being moved out of the family home which may mean that the family home will not be sold until the youngest child is 18 years old?
My stbx wants the house, it is way over mortgaged , we will both have a considerable amount of debt when sold. We are both on the Deed and mortgages. She cannot achieve a refinance soley in her name. If she is allowed to keep the house and my name has to stay as is on the mortgages till my youngest turns 18 my debt to income ratio is going to hurt me financially very badly.
Is this actually something that could really happen?

Something like that could only happen if you agreed to it. However, from a financial/credit perspective if the home is way over mortgaged, then it might be wiser to put off a sale for a few years anyway. (assuming that she could/would continue to pay the mortgage payments on time) A short sale would do just as much damage to your credit, as being overextended would...and a short sale would effect your credit for longer than a few years.

[Ohiogal]

Originally Posted by LdiJ

Something like that could only happen if you agreed to it. However, from a financial/credit perspective if the home is way over mortgaged, then it might be wiser to put off a sale for a few years anyway. (assuming that she could/would continue to pay the mortgage payments on time) A short sale would do just as much damage to your credit, as being overextended would...and a short sale would effect your credit for longer than a few years.

Unless they could come up with the money that they get to pay off the mortgage. Then their credit wouldn't be harmed at all.

[LdiJ]

Originally Posted by Ohiogal

Unless they could come up with the money that they get to pay off the mortgage. Then their credit wouldn't be harmed at all.

True, but when someone says "over mortgaged" that generally indicates a higher mortgage balance than the current fair market value.

[Ren225]

Thanks for the guidance it eases my worried mind, I was quite scared that she might be able to do that and yes the house is maybe worth about $84-85,000 in our market area,currently, but is mortgaged for about $105,000.00. Financial loss is staring both of us in the face in multiple areas of this divorce.

[LdiJ]

Originally Posted by Ren225

Thanks for the guidance it eases my worried mind, I was quite scared that she might be able to do that and yes the house is maybe worth about $84-85,000 in our market area,currently, but is mortgaged for about $105,000.00. Financial loss is staring both of us in the face in multiple areas of this divorce.

Then it honestly might be financially and credit wise, wiser, to put off the sale of the marital residence. Again, assuming that she can and will make the mortgage payments. Yes, it would tie up your credit for a few years, but a short sale would do far more damage.

The market should rebound in a couple of years, plus more of the principal would get paid down, and you might be able to break even on the sale if you wait.

[Ohiogal]

Originally Posted by LdiJ

Then it honestly might be financially and credit wise, wiser, to put off the sale of the marital residence. Again, assuming that she can and will make the mortgage payments. Yes, it would tie up your credit for a few years, but a short sale would do far more damage.

The market should rebound in a couple of years, plus more of the principal would get paid down, and you might be able to break even on the sale if you wait.

I can agree that it might be wiser to wait unless they can each get a personal loan to cover the deficit upon the sale of the house.