Court ordered house sale...

[ZmansGirl09]

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

Nov 2009: The court ordered our house be put on the market. No other order given (ie: sell-by date, equity payout order, etc). Ex husband resides in house. I reside in Nevada.

Nov 2009: House put on the market by ex, at $20K over market value.

Feb 2011: House still on the market, and still $20K over market value.

Ex has offered, in writing (e-mail) to buy me out of the equity, at $10K less than I am legally due. The $10K is what we would have paid in closing costs, so he thinks he should keep that.

I counter offered at $5K less than I am entitled to. He didn't like that, so he withdrew his offer entirely.

Ex now says he wants to refinance, to lower his payments. Wells Fargo says he can do that, without my signature. It will take my name off the mortgage, but not the title. Ex is offering, now, to pay me my equity via monthly payments for ten years. I have not responded but it strikes me as a bad idea.

He thinks he's hurting me by holding out, which I find amusing. And he doesn't seem to realize that the longer he waits, the more equity I get.

Although I'm not in a hurry -- IS there a way to get my equity without having to take him to court again? He won't lower the price of the house to market value. It could sit on the market forever.What is the name of your state (only U.S. law)?

 

[mistoffolees]

Although I'm not in a hurry -- IS there a way to get my equity without having to take him to court again?

Yes. Accept one of his offers.

If you want to fight over this, you're going to spend a lot more than the amount of money you're talking about in legal fees.

So it's really simple- if you want out, then you work out a reasonable settlement with him - and in today's market, $10 K less than your estimate of market value might actually be extremely fair to you. Most people overestimate what their house is really going to sell for.

OTOH, you could stay in it forever - but there's no guarantee that you'll ever see the money. He could find a way to get the equity out of it and you'd again spend a fortune trying to recover your money.

 

[LdiJ]

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

Nov 2009: The court ordered our house be put on the market. No other order given (ie: sell-by date, equity payout order, etc). Ex husband resides in house. I reside in Nevada.

Nov 2009: House put on the market by ex, at $20K over market value.

Feb 2011: House still on the market, and still $20K over market value.

Ex has offered, in writing (e-mail) to buy me out of the equity, at $10K less than I am legally due. The $10K is what we would have paid in closing costs, so he thinks he should keep that.

I counter offered at $5K less than I am entitled to. He didn't like that, so he withdrew his offer entirely.

Ex now says he wants to refinance, to lower his payments. Wells Fargo says he can do that, without my signature. It will take my name off the mortgage, but not the title. Ex is offering, now, to pay me my equity via monthly payments for ten years. I have not responded but it strikes me as a bad idea.

He thinks he's hurting me by holding out, which I find amusing. And he doesn't seem to realize that the longer he waits, the more equity I get.

Although I'm not in a hurry -- IS there a way to get my equity without having to take him to court again? He won't lower the price of the house to market value. It could sit on the market forever.What is the name of your state (only U.S. law)?

Are you certain that the bolded is correct?

 

[nextwife]

When was the last appraisal or BPO by a local broker done? If appraisal, did you use someone who specializes in your market? I've seen many people make the mistake of using a large pool type appraisal service who simply sends the next guy on rotation, and they may pull inappropriate comps (sometimes being e of this street, or south of that street puts one into a whole different neighborhood or price range), or fail to make the proper adjustments on comps with better upgrades, or deferred maintenance. In my experience, even appraisals can be way off the mark if one does not use an appraisal who understands the nuance of YOUR sub market.

 

[ZmansGirl09]

Are you certain that the bolded is correct?

I'm certain that's what Wells Fargo said. Wells Fargo said that THEY would do it w/o my signature, but did not know if a different lender would.

Yes. Accept one of his offers.

There is currently only one offer; That is, monthly payments for ten years. Would you know pros or cons of accepting that? I know what I think they are, but I'm trying to think outside the box. Your input could help me see it in a way I haven't thought of.

 

[ZmansGirl09]

When was the last appraisal or BPO by a local broker done? If appraisal, did you use someone who specializes in your market? ..... In my experience, even appraisals can be way off the mark if one does not use an appraisal who understands the nuance of YOUR sub market.

Um... the realtor hasn't submitted anything to me in a year, I think. I was considering footing the bill and having the house inspected/appraised by someone who does that. Not just a market analysis by a realtor who isn't interested in selling the house. Dunno if that would help at this point tho, since he refuses to adjust the price to market value. All it would do is give us a fair estimate of my equity?

 

[mistoffolees]

Um... the realtor hasn't submitted anything to me in a year, I think. I was considering footing the bill and having the house inspected/appraised by someone who does that. Not just a market analysis by a realtor who isn't interested in selling the house. Dunno if that would help at this point tho, since he refuses to adjust the price to market value. All it would do is give us a fair estimate of my equity?

It would give you a fair estimate of your equity.

If he is pricing it very far above market value, you could, at least in theory, go back to court and ask the court for a more specific order on selling the home. In extreme cases, you could get the court to grant you permission to control the sale. Whether that's going to happen in your case is going to depend very much on the judge - and you'd be better off to rely on the judgment of your attorney who presumably knows the judge.

 

[ZmansGirl09]

So it's really simple- if you want out, then you work out a reasonable settlement with him - and in today's market, $10 K less than your estimate of market value might actually be extremely fair to you. Most people overestimate what their house is really going to sell for.

I'm not arguing here. I don't really want out that badly. The longer we have the house, the more equity it will gain. That works for me. His offer of monthly payments on the equity seems kind of hokey. And I don't know if a court would bother forcing anything, even when ex has provided offers, and renigged on offers, in writing. And if it would cost a ton to take it to court, I see no reason in going that route. Like I said, I'm not in a hurry. (He's court ordered to take care of the house, to keep it in sellable condition.)

The house is currently listed at $165K. I'm basing my estimate of equity on a more fair market value of $145K. We have $100K equity. I've asked for $40K. That seems fair.

Again, not trying to argue or contradict or anything -- just providing more info. If its worth anything.

 

[ZmansGirl09]

It would give you a fair estimate of your equity.

If he is pricing it very far above market value, you could, at least in theory, go back to court and ask the court for a more specific order on selling the home. In extreme cases, you could get the court to grant you permission to control the sale. Whether that's going to happen in your case is going to depend very much on the judge - and you'd be better off to rely on the judgment of your attorney who presumably knows the judge.

Thank you for your input. I don't know if I have a case or not. I'm at a serious disadvantage, being out of state. I have documentation (e-mails) that show he's refused to lower the price of the house. And documentation that he's offered buyouts then renigged. I don't know what a judge would think of that. And I don't know if my disadvantage continues to grow the longer I wait. I suppose I should talk to an attorney in New Mexico.

Thank you again. (Everyone!)

 

[mistoffolees]

I'm not arguing here. I don't really want out that badly. The longer we have the house, the more equity it will gain. That works for me. His offer of monthly payments on the equity seems kind of hokey. And I don't know if a court would bother forcing anything, even when ex has provided offers, and renigged on offers, in writing. And if it would cost a ton to take it to court, I see no reason in going that route. Like I said, I'm not in a hurry. (He's court ordered to take care of the house, to keep it in sellable condition.)

The house is currently listed at $165K. I'm basing my estimate of equity on a more fair market value of $145K. We have $100K equity. I've asked for $40K. That seems fair.

It may seem fair to you, but without knowing the details, no one here knows if the house is worth $145 K - or $140 K - or even $100 K.

Get a reasonable estimate of the value. Either pay for a GOOD appraiser (one familiar with the local market) or get a few good realtors to give their evaluation.

Thank you for your input. I don't know if I have a case or not. I'm at a serious disadvantage, being out of state. I have documentation (e-mails) that show he's refused to lower the price of the house. And documentation that he's offered buyouts then renigged. I don't know what a judge would think of that. And I don't know if my disadvantage continues to grow the longer I wait. I suppose I should talk to an attorney in New Mexico.

Thank you again. (Everyone!)

If you could prove that he reneged on offers, you might have a case - but proving that would be tough. In addition, handling an out of state case like this is going to be difficult and expensive.

My advice is to move on with your life. Reach a reasonable agreement with him. You can always counter his offer with something more to your liking.

 

[ZmansGirl09]

By the way...

If he does refinance the house, does that officially "sell" it, in that my name comes off the mortgage? I know I would still have to sign the quit claim deed and all.

 

[mistoffolees]

By the way...

If he does refinance the house, does that officially "sell" it, in that my name comes off the mortgage? I know I would still have to sign the quit claim deed and all.

Depends on the exact wording of the decree.

However, I would encourage you to look seriously at what's the right way to get yourself out of the situation rather than insisting on waiting for a sale.

If he refinances and pays you your share of equity, that accomplishes what the decree tried to do.

 

[Ohiogal]

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

Nov 2009: The court ordered our house be put on the market. No other order given (ie: sell-by date, equity payout order, etc). Ex husband resides in house. I reside in Nevada.

Nov 2009: House put on the market by ex, at $20K over market value.

Feb 2011: House still on the market, and still $20K over market value.

Ex has offered, in writing (e-mail) to buy me out of the equity, at $10K less than I am legally due. The $10K is what we would have paid in closing costs, so he thinks he should keep that.

I counter offered at $5K less than I am entitled to. He didn't like that, so he withdrew his offer entirely.

Ex now says he wants to refinance, to lower his payments. Wells Fargo says he can do that, without my signature. It will take my name off the mortgage, but not the title. Ex is offering, now, to pay me my equity via monthly payments for ten years. I have not responded but it strikes me as a bad idea.

He thinks he's hurting me by holding out, which I find amusing. And he doesn't seem to realize that the longer he waits, the more equity I get.

Although I'm not in a hurry -- IS there a way to get my equity without having to take him to court again? He won't lower the price of the house to market value. It could sit on the market forever.What is the name of your state (only U.S. law)?

What exactly does the divorce decree state regarding the equity? Because normally it quits accruing at the time of the divorce. Why do you think the amount of your equity is INCREASING when he is paying everything?

 

[nextwife]

What exactly does the divorce decree state regarding the equity? Because normally it quits accruing at the time of the divorce. Why do you think the amount of your equity is INCREASING when he is paying everything?

And, while values have been dropping . . .

 

[ZmansGirl09]

What exactly does the divorce decree state regarding the equity? Because normally it quits accruing at the time of the divorce. Why do you think the amount of your equity is INCREASING when he is paying everything?

MARITAL SETTLEMENT AGREEMENT
PROPERTY
3. Marital Residence: The residence located at [address] shall be placed on the market no later than 7 days from entry of this agreement. The parties agree to use Sandy Pressley as the Realtor. Husband shall continue to live in the house until it is sold. Husband shall be solely responsible for the mortgate payments and reasonable upkeep on the residence until it is sold. The cost of any repairs or improvements recommended by the agent shall be agreed upon in advance and shared equally by the parties. The proceeds from the sale of the house shall be split equally between the parties after the mortgage and cost of closing are paid.

That's it. Proceeds are split equally after mortgage and closing costs. Nothing about my equity ends at time of divorce.

It makes sense that the equity stops at the time of divorce tho.... I honestly hadn't thought of that because that's not what it says. It doesn't say that anywhere. But that would be the right thing to do, huh. Hmm. Maybe that could be a negotiating point? Say I'm willing to accept equity as of time of divorce versus waiting and waiting and therefore accruing more equity?

He offered a buyout and I counteroffered. He rejected the counteroffer by ignoring it and just telling the realtor to continue the listing. When I sent a letter saying 'you know what, I want to be done, so lets do it,' he replied with "you rejected it so its no longer valid. But I'll pay you monthly payments for ten years." I haven't replied to that, and that's why I'm here with you all -- trying to sort it out and get a good idea. I don't want to be the greedy bitchy ex-wife (I'm not that type of person at all). My reason for being here is not to get the most I can get; my reason for being here IS so that I don't get screwed over royally.

As to my question(s) above, the equity hasn't increased that much between the divorce and now. Not considering potential changes in market value, of course.