My home is in forclosure and I'm in a divorce - please help

Rental Property Investor · Los Angeles Ca · Member since 2016 · 13 posts · 1 vote

Due to divorce and other factors - my home is $119,000 past due with about $15,400 in back escrow fees, the mortgage is $4200 and could be re-instated - wife does not want to sell it to me, even though I would like to keep it

anyone have any ideas on how I can come to end of this problem home? Ideally, I want to keep the home, I'm open to ideas on how to save or sell the home - please be nice as this is not an ideal situation so I'm looking for a way forward, I know I screwed up, I'm looking for some help

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

Its hard to just see a home as a business transaction, but really, it's just a box people sleep in. You will always have your good memories there.

Most of the time it's best to sell and start fresh, especially with a divorce. What is the estimated FMV? Coming up with $134k plus potential future drama sounds rough. Hopefully that is still enough equity to sell conventionally? Short sales are no fun. I'd vote to sell either way. Best wishes to you.

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
8y
If you want to keep the home, you need to either work out an arrangement with the mortgagor or refinance the loan. When you say your wife does not want to sell it to you, I'm not sure what you mean - if you're divorced, there was (I assume) some resolution on ownership of the house & responsibility for the mortgage?
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
Its hard to just see a home as a business transaction, but really, it's just a box people sleep in. You will always have your good memories there.
Most of the time it's best to sell and start fresh, especially with a divorce. What is the estimated FMV? Coming up with $134k plus potential future drama sounds rough. Hopefully that is still enough equity to sell conventionally? Short sales are no fun. I'd vote to sell either way. Best wishes to you.
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Ron S.
Paradise, CA · Member since 2015 · 1k+ posts · 871 votes
8y
Originally posted by @Dave Oneal:

Due to divorce and other factors - my home is $119,000 past due with about $15,400 in back escrow fees, the mortgage is $4200 and could be re-instated - wife does not want to sell it to me, even though I would like to keep it

anyone have any ideas on how I can come to end of this problem home? Ideally, I want to keep the home, I'm open to ideas on how to save or sell the home - please be nice as this is not an ideal situation so I'm looking for a way forward, I know I screwed up, I'm looking for some help
I don't think you mean "Escrow" fees as that would imply your home/loan is in escrow, for a purchase or sale. You probably mean advances for escrows for taxes and/or insurance? And then on top of that, the past due (arrears) payments of $119M? And...eventually, some foreclosure fees if not accrued already. That's putting you into about a $150M past due balance?
If you are officially in divorce, that will be resolved ("That" being the wife doesn't want to sell to you) shortly as the courts will determine who gets the house (And the liability associated with it). The divorce will have no impact on the past due balance or foreclosure situation. NOTHING a family law judge says has ANY weight on a contract. If the loan is in your name and the wife's name, your both on the hook. Once the divorce is final and the estate is distributed, someone will be responsible for the mortgage. Whoever is ultimately responsible will have to come up with the past due amount and if they don't one or both of you will have a foreclosure on your record. If you get the house, the judge will literally make her sign a quitclaim deed to you and you'll have the freedom to sell it or do whatever you want with it. I've found that family law courts are not fast. I've also found that foreclosures are so, you have these two working against you. You could get an ex-parte hearing in family law by your attorney (assuming you have one) and get into court right away due to the looming foreclosure.
The only potential good news down the road...or...I should say less bad news is that if she gets it, you could show the decree to a new lender, showing you are not responsible for it. That won't help your credit but at least you'll feel better (Probably not) knowing she has the liability. That said, being in California, its a single action state so neither of you have to worry about anyone coming after you for a deficiency.
My two cents, unless there is TONS of equity and/or unless you have tons of discretionary cash laying around to reinstate, I'd let it go and start over. Granted, I don't know a thing about your situation but sometimes a clean start is best for everyone.
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Brett Goldsmith
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
8y
@Dave Oneal How much is the home worth? Who is going to be awarded the house in the divorce? Sent you a PM.
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