Stuck in the mud

[dragonkeeper]

What is the name of your state (only U.S. law)? Arizona I have been married 9 years and have been wanting a divorce for 8. How do I get him to buy me out of the house as I want to go back to California and move on. We owe more than it's worth.

 

[nextwife]

If you owe more than it's worth, you and he need to sell it and each come up with your share of what's owed to the lender. Or you have him refi and you pay him your share of the shortfall so he can get a loan to take you off the mortgage. He DOESN'T "buy you out", meaning PAY you for your share IF you and he have negative equity. Negative equity means you and he BOTH owe the bank the mortgage PLUS the additional difference. It's called "bringing cash to the table", which had a previously been the means of closing on the transfer of an upside down property for decades.

 

[mistoffolees]

Or you have him refi and you pay him your share of the shortfall so he can get a loan to take you off the mortgage. Negative equity means you and he BOTH owe the bank the mortgage PLUS the additional difference. It's called "bringing cash to the table", which had a previously been the means of closing on the transfer of an upside down property for decades.

But note that they may have to bring a LOT of cash to the table. It won't be enough to cover the shortfall. They'll also need to add some equity. Typically, banks want at least 20% equity to refi an existing mortgage, although with very good credit, they might take less. In any event, they'll need to come up with enough cash to cover AT LEAST 10% equity, probably 20%.

 

[LdiJ]

But note that they may have to bring a LOT of cash to the table. It won't be enough to cover the shortfall. They'll also need to add some equity. Typically, banks want at least 20% equity to refi an existing mortgage, although with very good credit, they might take less. In any event, they'll need to come up with enough cash to cover AT LEAST 10% equity, probably 20%.

Nextwife was talking about a sale though, not a refi.

 

[Bali Hai]

Wait a minute everyone, you've completely missed OP's question.

Her question is, how does she get out of this 9 year marriage and go back to CA with a pocket full of her ex's money so she can move on with her life.

 

[mistoffolees]

Nextwife was talking about a sale though, not a refi.

Really? What part of "Or you have him refi" didn't you understand?