Posted by colvegas on September 16, 2006 at 03:37:06:
The potential issues I can see is if your friend goes through a realtor they will of course pay some type of R/E commission thus eating up any equity on the property plus any capital gains since you did not satisfy the 121 exclusion rule of living in the home 2/5 years,so that is most likely what your attorny is referring to.
The idea is the housing market tends to slow in the winter and pick back up in the spring so your attorney may be thinking you may accure some equity over those months…?? who knows…
They must have equity if the wife put down 20% on the property. You will need to have them really look at their realistic exit strategy so unless it is priced right in this market being that it has slowed somewhat nationwide they may need to lease it out to have someone else make the payments.
Why would the wife lose the downpayment…?? the only way is unless the house is overencumbered thus little or no equity… I would have them move quickly whichever they decide to avoid this affectng their credit and finances…
If I can help feel free to email me at coltrust07@gmail.com. I may have some ideas for your friend to consider…
divorce situation, any options for this - Posted by Jason
Posted by Jason on September 13, 2006 at 13:04:10:
a friend of mine unfortunately is selling a home he just bought because of a divorce that he is going to go thru and I was wanting to get some advice on what he could do to get out from the house, and his soon-to-be ex easily. Here’s the deal:
bought house in July 06, joint ownership. She provided 20% donw payment and his credit and good job provided the loan. they are both moving out but her attorney is advising her not to sell until spring because she will “probably lose alot of the down payment in a sale now”. That doesn’t make any sense to me. If they offer it for sale at a certain price and someone takes that offer …how does it affect the numbers in any way whether they sell now or in the spring. I think this might be a ploy on her part to try and live there until the spring, my buddy has moved out already and is moving in with me soon.
He can’t afford to make the payments and she is on disability i think and doesn’t have a job. How can he get out from under the house ASAP. She doesn’t want to lose the down payment and he can’t continue to make the payments and find another place to rent. Payments are current and the loan doesn’t have a prepayment penalty. Is there any thing that could help him being this loan is only a few months old? I’m just trying to get some ideas for them.