Mortgage question...

[stretchkr]

Stbx and i bought a house together 3 years ago, that has maybe 5k in equity. She has said on many occasions, that she will "give" me the house at settlement, as she does not want it. What is the wcs on this, I would have to pay her half the equity and refi the house? Or would I be ordered to sell the house and soplit it, even though we owe likely more than we would get. Is there a scenario where a Judge would sign off on me just getting our most valuable asset, without her getting equal compensation, even if she agrees to it in mediation?

[jumbledone]

If there is no value, it is not valuable, let alone an asset.

If it would go underwater in a sale, make sure she is helping out with making you whole (ie half of difference between selling price and what is owed).

Debts are split as well.

[Fatheroffour]

IMO, 5K equity isn't enough to market and sell it. If you are not using the "House and kids are a matched set" philosophy, it's not worth letting her use it as a bargaining chip.

[stretchkr]

What I'm asking is if she agrees, can I truly just recieve the house when it goes in front of a Judge, or will he/she say it is not a fair division, even if she agreed to it? There is no way it would sell. Not that it is a bad house, it just wont, and no houses are selling atm.

[Fatheroffour]

If she agrees then a judge should sign off on it.

But there are no guarantees.

[BubbaGumpShrimp]

What I'm asking is if she agrees, can I truly just recieve the house when it goes in front of a Judge, or will he/she say it is not a fair division, even if she agreed to it? There is no way it would sell. Not that it is a bad house, it just wont, and no houses are selling atm.

Should a judge sign off on it? Yes. We're talking about $5k in "equity." Let's be honest here...that number is pulled out of your ***. If the house went on the market today, you WILL lose money to sell it. About 6% realtor commission, you'll have to pay 3% for the buyers closing costs, etc. It'll cost you $15k+ to get out of that house. Judge's aren't idiots and should know that.

Even if he does agree to it...you still have to re-fi the place. Your mortgage company isn't going to just take her name off the mortage. You'll have to re-finance the place and run it with your credit (only) and your application to establish that you can afford the place on your own.

If you have half of the "equity" to throw her way ($2,500)...just do it. Otherwise, it's pretty reasonable to say that there is not REALLY any equity and you're giving her more than $2,500 just by taking on the house and letting her move on. Seriously...if I could have gotten rid of my NJ by throwing $2,500 her way....I'd have done it in a heartbeat.

[stretchkr]

Thank you guys.

[mbxdad]

Seriously...if I could have gotten rid of my NJ by throwing $2,500 her way....I'd have done it in a heartbeat.

Amen to that, BubbaG.

Multiply by 200 and it's still worth every penny. Now if she'd just truly be out of my life it would be all good, but as we know they don't ever truly exit when there are kids in the picture.

[Thermite]

Multiply by 200 and it's still worth every penny.

Crickey. For half a million dollars? For that kind of money you aught to be able find someone to get rid of her permanently.

[dark humor] "For 3 thousand bucks you can have somebody killed. For 5 thousand, you get to pick who it is." [/dark humor]

[kidsdadtexas]

i could cost you over 5k to refinance the house so really no equity at all when you refinance; If you are able.

here's a few good links to check the estimated value

https://www.chase.com/online/Home-Lendi ... imator.htm

http://www.zillow.com/homes/recently_sold/

http://www.eppraisal.com/home-values.mvc


If your property is listed here and UNDERWATER and current loan opened prior to may 2009 then value wouldn't be deal killer when refinancing. However you would need to document that you have made the mortgage payments not from a joint account but your own funds for the past 12 months.

http://www.fanniemae.com/loanlookup/

if no refinance option is available then she could be removed from title but would be stuck on the loan with you.


Sincerely,

mortgage banker