Question by mtnman717us: How to get out out of a expensive mortgage?
Is there any good way to get out of an upside down mortgage? My ex wife currently owns a house that she really can’t afford. We refinanced the mortgage when we got diovrced 5 years ago. Since then, she has refinanced once more. With the current housing market where she lives, she owes more than she could get for it by selling at a reasonable price. Does she have any options to get out of the mortgage?
If my ex wife sells the house for less than she owes on the mortgage, and owes the difference to the bank, is that money owed at the time of closing or is it paid back as a personal loan?
I did try to help her sell it when we got divorced, knowing it was too expensive for her to maintain with her financial situation. My advice was not well received, as she wanted the status symbol of a big home. I no longer have any financial obligation on the home, so it is not my problem to resolve.
For anyone who wants to know my motive, there is no motive for me one way or the other. I don’t benefit one way or the other. I do care about my children though who live with my ex wife, and making sure they are cared for and have a nice, reasonable place to live. I pay my child support and she needs to also be able to adequately take care of them and share the costs of raising them.
Answer by Moondog
If she is behind in payments she can talk to the bank. They won’t deal if the payments are current. They have no reason to. If it is sold for less than the mortgage then the difference has to be paid – or defaulted. Other than selling it and paying the difference all other options have a significant negative effect on credit rating.
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