Eliminating Marital Mortgage Debt May Be More Important Than Dividing the Marital Property

Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

In today’s housing market, eliminating the marital mortgage debt may be more important than dividing up the marital property.

Selling and getting rid of the house also gets rid of the mortgage debt and the mortgage payment. If the mortgage payment is too high and unsustainable then keeping the house is a recipe for disaster.

A short sale can solve the problem of selling a house that is worth less than the debt.

In a short sale, the lender allows the house to sell for an amount SHORT of the payoff. In most cases the lender forgives the deficiency, but not always.

Questions to ask if you get the house and get the debt:

  • Did the house value go down tens of thousands of dollars or hundreds of thousands of dollars LESS than what you owe?
  • How many years will you be chained to the house until you can sell it to break even?
  • Is this debt likely to lead to foreclosure and/or bankruptcy? How will that help anything?

Questions to ask if you got the debt obligation AND child support obligation:

  • If the house payment is locked in to an historical high payment, will there will be less money available for child support payments?
  • In this housing market, can a similar or better house be bought or rented with a much lower monthly payment than the marital house? That would leave much more money for supporting the children you love.

What is more important? The house or the kids?

What’s more important, throwing money at the mortgage company to prop up an unsustainable high mortgage payment on a hopelessly overleveraged house, or freeing up cash to provide for the needs of your children?

Regardless of whether you are the in-the-house spouse or the out-of-the-house spouse, and regardless of if you are the spouse saddled with the debt or not, making payments on an unsustainable mortgage deprives the children of much needed resources.

How do I find out more about a short sale?

When facing divorce with an upside down mortgage, always consult with a Realtor who specializes in short sales. In Louisville, KY and surrounding counties please call Dave Halpern, Real Estate Broker, Louisville Short Sale Expert at (502) 664-7827.

Dave will also gladly share his knowledge with divorce lawyers, mediators and any one else you deem necessary. We have helped many divorcing couples liquidate their home to avoid more stress and financial burden. Testimonials available upon request.


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Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827



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Dave Halpern

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