Dealing with foreclosure in a divorce?

[LVScooby]

I am so worn out right now, I don't know where to look for this info.

If someone would be so kind, please point me in the right direction.

We stopped paying in March as a loving couple. Now it looks like we are going to get a divorce. What are the options in taking the underwater house out of one name or...heck, I don't even know what to ask. I just want to get this done and over with asap. She will be staying in the house.

Thank you.

[Cat Damiano]

I am so worn out right now, I don't know where to look for this info.

If someone would be so kind, please point me in the right direction.

We stopped paying in March as a loving couple. Now it looks like we are going to get a divorce. What are the options in taking the underwater house out of one name or...heck, I don't even know what to ask. I just want to get this done and over with asap. She will be staying in the house.

Thank you.

This will be something that will be discussed with your attorney. They will be able to guide you through that process and let you know what your options would be.

[ArizonaMover]

Typically if the two of you agree that Wife will end up with the house, the divorce decree will be worded something to the effect of "Wife is awarded house, on the condition that she refinance the house in her name within six months of the date of this decree. If Wife is unable to refinance within six months, then the house will be listed for sale or short sale. Husband will quitclaim the house to Wife to facilitate the refinancing or sale."

In your situation where the house is underwater and you have already missed some payments thus lowering your credit scores, it may be doubtful that she will qualify to refi in just her own name, even if she wants to. Her only option might be trying to get a loan mod into just her name which is something of a long shot.

In reality, if you are way upside down and it would be a stretch for her to afford the home with just her income, it is probably in her interest and yours to just go ahead and short-sell the house or even just let it go. Does she really want to stretch to hang on to an upside-down house?

One bit of lemonade here is that if she is living in the house rent-free and mortgage-payment-free while the divorce is pending (and even for some months afterward), your attorney ought to be able to get you an offset for that portion of your alimony/spousal maintenance obligation, since she is receiving the benefit of the use of the home for free until it either refis, sells, or forecloses.