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

By
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.

 

Posted by

 

 

Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827

 

 

View Dave Halpern's profile on LinkedIndave_halpern twitterhalperndave_facebookDave Halpern QR CodeLouisville Foreclosure Realtors Dave Halpern

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Location:
Kentucky Jefferson County Louisville
Groups:
The Lounge at Active Rain
Short Sales Specialists
The Ninety-ninth Percentile
Voice of Reason
Bananatude
Tags:
realtor
divorce
children
kids
mortgage payment
louisville ky
monthly payment
divide
child support
dh
marital property
marital house

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
526,160

Dave Halpern

Louisville Short Sale Expert
Ask me a question
*
*
*
*

Additional Information