Refinancing stipulations?

[thelizzy]

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

I filed for divorce from my husband six months ago.

We jointly own a home (both names on mortgage and deed).

I want no parts of it. He says that he is currently unable to refinance without coughing up $8,000, due to negative equity in the house (thank you, current economy!).

Selling the house at this time would result in taking a major hit.

I've told him that I'm willing to remain on the mortgage until he can refinance it. I'm writing up a document for my lawyer right now, trying to spell out exactly what it is I'm proposing, as he has not been much help in the past six months.

Is it possible for there to be some sort of contract that, if at the end of a period of time (say, 2 years) he is unable or unwilling to refinance the home at that time, can I sell it without his consent?

Also, if he suddenly chooses to stop making payments and have it threatened with foreclosure, then what?

I understand that by being on the mortgage, if he fails to pay, I am responsible.

He makes $60K a year and there is no reason why he shouldn't be able to make the payments, especially if he gets a roommate to help defray the cost.

Thank you in advance.

 

[mistoffolees]

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

I filed for divorce from my husband six months ago.

We jointly own a home (both names on mortgage and deed).

I want no parts of it. He says that he is currently unable to refinance without coughing up $8,000, due to negative equity in the house (thank you, current economy!).

Selling the house at this time would result in taking a major hit.

I've told him that I'm willing to remain on the mortgage until he can refinance it. I'm writing up a document for my lawyer right now, trying to spell out exactly what it is I'm proposing, as he has not been much help in the past six months.

Is it possible for there to be some sort of contract that, if at the end of a period of time (say, 2 years) he is unable or unwilling to refinance the home at that time, can I sell it without his consent?

Also, if he suddenly chooses to stop making payments and have it threatened with foreclosure, then what?

I understand that by being on the mortgage, if he fails to pay, I am responsible.

He makes $60K a year and there is no reason why he shouldn't be able to make the payments, especially if he gets a roommate to help defray the cost.

Thank you in advance.

It's not worth the aggravation. Heck, the legal expenses will eat up at least your half of the $8 K. There's a new thread here almost every day about someone who never got their name off the mortgage and is now facing foreclosure and/or having their credit rating ruined.

I would tell him he has to come up with the $8 K before the divorce is finalized or the house goes on the market.

 

[thelizzy]

It's not worth the aggravation. Heck, the legal expenses will eat up at least your half of the $8 K. There's a new thread here almost every day about someone who never got their name off the mortgage and is now facing foreclosure and/or having their credit rating ruined.

I would tell him he has to come up with the $8 K before the divorce is finalized or the house goes on the market.

Thanks for your advice.

If i tell him that he has to come up with the 8K before the divorce is final, he will honestly just sit there and stall for years, I'm sure.

If the house DOES get put on the market, and sells for less than it's worth (far less, and it would most likely be on the market for at least 6 months based on the surrounding properties), is it possible to make him liable for the difference between the sale price and the remaining mortgage?

 

[Humusluvr]

is it possible to make him liable for the difference between the sale price and the remaining mortgage?

I thought you said the house had negative equity?

And no, you can't make him liable. The economy is not his fault, and the divorce is just bad timing.

 

[mistoffolees]

Thanks for your advice.

If i tell him that he has to come up with the 8K before the divorce is final, he will honestly just sit there and stall for years, I'm sure.

If the house DOES get put on the market, and sells for less than it's worth (far less, and it would most likely be on the market for at least 6 months based on the surrounding properties), is it possible to make him liable for the difference between the sale price and the remaining mortgage?

No. It's marital property. You're each responsible for half of the value and half of the debt.

You're probably better off taking a loss now than having your credit tied up (and maybe ruined) for years. If he won't or can't refinance, I'd ask the judge to order the house sold. Make sure you have some control over the process so he can't set an unrealistic price and/or reject reasonable offers.