What strategy can I use for a divorcee, spouse wants to remain

Question

The guy is going through a divorce, and he and his sons want to keep the house, due to a lot of good memories.

He's wanting to refi, but his credit is bad. A bank has offered 11% and 4 points. He wants to explore options.

House is worth about $340,000.

I have to pay my wife off about $110,000 (I'm guessing from what the house is worth, and the divorce lawyer is putting in for?)

The mortgage on it right now is $133,000.

I need a total loan of $243,000 which leaves about $100,000 in equity. I do also own the one acre lot next to my house now that's worth about $35,000.

I make enough money it's just I have terrible credit score.On that last point, my scores are good (between low 700 to about 750), but the money isn't as high on my side.

Should I do a HML, where he pays all related costs, and he can then refi in 1 - 2 years, and pay me off? Should we "partner up?"Thanks for your ideas!

Mark Pedroza · Answer

Request the Marriage Balance Sheet to determine all true assets and liabilities of divorcing couple..

Aaron K. · Answer

@Eddie Starr what is your plan to make money here, the guy wants to live in the home so unless you want to be his lender there isn't much to invest in. Why would you put your creditworthiness on the line with an HML when you don't own the property? Particularly for someone with bad credit, who the bank thinks is so much of a risk that they are charging HML style rates to.

What strategy can I use for a divorcee, spouse wants to remain

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