So since this could fit in any number of the divorce threads I figured why not start a new one. With the law talkers, real estate gurus, mortgage guys, and manly men divorced from super models someone has to be able to provide a little clarity on this. I live with my fiancé. She got the full value of this house in the divorce. He got the beach house. He's a 7 figure consultant and has zero issues with income or cash. The decree states he pays the mortgage on the house until paid off or she sells. If she sells he has 8 years to pay her the mortgage payoff from closing. Pretty straight forward so far. House is valued at 2m and balance is 800k for the sake of simplicity. When the rates went up he didn't refi and let the 7/1 balloon roll to a much higher rate. Now he has decided that he's paying too much interest on the mortgage and has told her he's going to stop paying it. His other offers were to buy the house back for 1.6 or she could pay the extra 2k a month in interest and he'd keep paying it. Contempt of court sure, but she's decided that the time and money it would take to force him to pay would put the house in jeopardy of foreclosure. Moving gets her divorced from the house aspect of the decree. If he decides to stop or not pay off the balance then she sues and it will probably eff up his career. She decided eff him and we are going to put the place on the market around June 1. Now the problem we have is getting into another house without renting in the interim. She's fine with renting but I'd rather avoid it if possible. I've moved too many times since my divorce was finalized in 2018 and would love to not have to do it again if it's possible. Here's the issue. With our combined incomes we don't have the money to get a loan for a house in the 1.2 range. The equity in this house easily covers the cost of a 1.2m house once this sells. Would a bank agree to a mortgage with the facts of the divorce decree, value of the house, and court ordered income over 8 years from the date of closing? Another option could be a bridge loan. All of the same questions apply as apply to the mortgage question. As far as whether he is bluffing or not, there's no telling. He has two 16 year old girls he's not concerned enough about to force them to move half way through high school. His ideal would be to force us out of the district or far enough from their school so that they would want to stay with him. He doesn't seem concerned about a hit to his credit if he stops paying the mortgage. They were married for 12 years. She made more than him in the beginning and supported his going through the whole MBA to consultant path which meant she took care of everything while he was traveling 5 days a week. And I mean everything financially, family, managing the rental property, etc. She didn't marry him and ride the gravy train. She busted her ass to allow him to bust his ass. No need for uppercuts.
File notice of breach. File contempt motion. Pay mortgage as much as necessary to keep the sheriff from knocking on the door. Sue his ass off. Bang the shit out of his ex as he’s writing checks for her expenses. Winner.
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I would think a bank wouldn't do that very easily, but I'm not a mortgage guy? It seems it would be easier to sell to someone with a rent back option for 3-6 months. That way you still only have to move one time, and you get the money to buy the new place and have no problems with getting a small loan, if needed?
Oh, and I’d also file a motion seeking to force the deadbeat to immediately satisfy the mortgage so that he won’t be tempted to play these games again.
Creative means of finance are going to be expensive and messy. It's not a bank thing, more like a small or regional investor type of deal and they are going to wanna get PAID to make this work. Also, because it's a divorce, and potential for a lawsuit. Nobody is really going to want to touch it. This is just me skimming the details though. I'm a little confused though on current ownership and who is on the mortgage. Specifically, who is on title to the house in question, and who is on the underlying mortgage? That could make some differences as to how messy this gets.
She is the only person on the title. He has the mortgage in his name. At least I think it's a mortgage and not a promissory note.
My Holiday Inn law degree leads me to believe that he's on the hook to pay the mortgage. Does not sound like it was pay X$ per month or annually.. simply pay the mortgage. If he did not or did refi - that's on him not her. Go with what Pickled Egg said. Homeboy is on the hook. One thing I'd have her do is perhaps call the mortgage holder to inform them of what's going on and offer to escrow payments to avoid any foreclosure if possible. Running through the courts could easily take long enough with him not paying for them to foreclose on the home.
If I was paying for a mansion that my ex was living in with some other dude, I'd probably get pretty petty about paying for stuff right up to the bounds of legality. In his shoes he's on the hook for whatever, but he's probably not motivated to make it easy for either of you.
Your probably right. However, if I was here I'd for sure have a record of the conversation and call to the mortgage company as well as create my own escrow acct to pay monthly into so when this comes up in court you she will look real good. Set money aside for payments to prevent losing house, made good faith effort with lender and so on. When it comes to court, its always paints you in a good light when you are making any attempt available to you to prevent a negative outcome.
If the house is securing the loan, and she is the sole person on the title, I’d be willing to bet she has access to pertinent information regarding the mortgage.
Although I have no idea how this would be resolved, I must say this upends the whole “the woman is the villain” narrative in the divorce thread.
Yeesh. I couldn't imagine having to pay the mortgage for my ex who has a new dude living with her. That's what those jilted lover/murderous ex lifetime movies are made of. I also couldn't imagine living in a house with my fiance while some other dude pays the bills. Sell the fucking house, marry each other, and move on unconnected to the "last dude" other than being cordial for the kids' relationship (or not, depending on if he's active) with their dad. The thought of living in a house some other dude is actively paying bills on makes me feel...gross/slimy
What you guys are failing to comprehend… She got the house in the financial settlement, he got off easy being permitted to pay the mortgage instead of lump summing her out to pay the note. Since he can’t seem to handle the responsibility, I’d be moving to force him to settle the note and leave the property unencumbered.
Only the wera forum can deliver this kind of shit "Hey guys, I'm plugging my gal in a 2million dollar house that another dude pays for, can someone help me "
Pickeded Egg's post earlier pretty much nails it IMHO. May have to get an attorney. Other options as I see it: 1. Bridge loan. Yes, you can do it. You are going to want to link up with someone local on this. They will know your market better and let you know what terms they are comfortable with. Expect a near double digit interest rate, with a couple of points tacked on if you intend to use the equity from sale to pay cash for the new house. Usually a six month term, though sometimes up to a year. Sometimes you make minimum payments, other times it's lump sum at the end and just accrues interest. If you are going to use the equity to make a large down payment, it's common for bridge loan lenders to require that the subsequent mortgage be obtained from their company. Keeps everything in house and they know you qualify up front. The issue becomes how they qualify you in the interim period. If the bridge note counts, it can put people over on debt to income ratio. The issue I see here is continuance of payment per the divorce decree. Now, normally if this comes up, we will ask to see that you are actually getting paid. In this case, if you mention "oh, well, he's supposed to be paying us but isn't, but don't worry, I'm sure he will pay us afterwards..........." you are going to hear a long pause from the lender. 2. List and buy with a contingent offer. This is going to depend on your local market. Most agents view these types of transactions the same way vampires view garlic. That being said, as long as everyone is doing their job they don't have to be a nightmare. It just compresses your timeline significantly. Grab an experienced agent that does a ton of transactions in your area and this will likely be workable. Not a newbie that doesn't do any volume that nobody knows though. These types of deals are much more common these days with the great migration. Either way, I suspect you are going to end up in court anyway it sounds like though. So mentally prepare for that.
