Posted by Lisa on January 16, 2003 at 20:25:48:
What was stipulated in the Divorce agreement? Is he willing to take a loss of equity for a quick sale or is he trying to get half of what it would be worth if it were prime. I’d be careful of his intentions. Bankruptcy and divorce and malpractice should equal be happy with anything you can salvage.
I wouldn’t sell if you can make the payments. Unless you have somewhere better to live and will be done with him.
Single Mom Needs Advice On Home… - Posted by Teresa
Posted by Teresa on January 16, 2003 at 12:45:29:
I have a single family home in DE. It is 2 story home in a great neighborhood. The homes here sell for about $300-$350. My home is not in the greatest condition, though. It would probably sell around $270 or so. The advantage is that homes in this area have been actually selling above market value since this is a hot area to live in. Now…here’s my situation.
I am divorced and my husband wants me to sell the house and get his equity. We owe $210 on the house total. He is a doctor going through a malpractice suit at this time. Here are my questions:
Should we try to refinance and get the house in my name only? this way I can hold the equity until we find out howthe malpractice suit goes.
Should I sell the house outright and just be done with it? If so, we went through bankruptcy while we were married (2 yrs ago) so that will affect me getting a new mortgage.
Should I lease the house out and move into another?
Please give me some advice. Please…only experienced investors.
Teresa
Consider a Land Trust - Posted by Barbara_NY
Posted by Barbara_NY on January 17, 2003 at 19:15:28:
If you want to stay and can afford the monthly payments but are simply looking for a way to protect your property from attachment during suit you may want to strongly consider placing it in a Land Trust. This is a common Estate Planning transaction and your attorney could notify your lender that you and your husband have done so for that purpose. Once done (quite inexpensive) your property would not be attachable. As a matter of fact it wouldn’t even come up in a property search because it would now be in the name of the Land Trust. For example: Let’s say you live at 123 Johnson Street. The Land Trust could be named 123 Johnson Street Trust. That would be the name that would come up in the search. Then you and your hushand would be co-beneficiaries. If he wants to get his equity out right away he can assign his beneficiary interest to another for cash. That person would then own whatever percentage of the beneficiary interest he had. He could even sell it to you on a Note with monthly payments. Bottom line… a Land Trust might afford you a set of options attractive to meet your needs.
Good Luck.
Re: Single Mom Needs Advice On Home… - Posted by Long Beach Ed
Posted by Long Beach Ed on January 17, 2003 at 16:04:15:
Teresa,
Beware of the malpractice suit. If your husband is on the deed and there is any chance of his liability in a settlement above his insurance, the house could wind up belonging to some maimed victim. So discuss this with his lawyer in the suit. Any sale of the place now could on a long shot be considered a fradulent transfer.
If this is not a problem you have to decide if you want the place or not. Can you afford to carry it? Will it go up in value or will the real estate bubble burst and you lose your equity? Do you need it for your kids to stay in the school district? Do you like it?
Remember that your happiness is most important. You may not want to live there anymore.
They say cash is king, but that $35,000 may run through those little fingers really fast if you’re not careful or skilled in handling cash.
These are the considerations, Teresa. I’d beware of the landlord gig unless you have the stomach and experience to handle that. It’s another job, actually a whole career dealing with tenants.
Hope this offers some thoughts.
Write if you have any specific questions. I do this stuff all the time.
Long Beach Ed
Re: Single Mom Needs Advice On Home… - Posted by Christen
Posted by Christen on January 17, 2003 at 09:08:04:
I’d stay if you can, the most leniant mortgage brokers I have dealt with want bankruptcy discarged atleast three years. However if you just want to be done with it you can take your share of the equity 35K With a big enough downpayment a bank will work with anything.