What’s the best way to sell my house while going through a divorce?
I’m currently going through a divorce which will be final on July 16. My wife and I have decided to sell the house, split the equity and part ways.
The house is listed for 5K and we only owe 3K. For the sake of simplicity lets say we sell the house and make a K profit. We split this 50/50.
I currently have about K in student loans. I’m currently paying off this loan based on a 5.99 APR. I was going to use my half to pay off the balance and then use my military VA to get into a more inexpensive house. My wife is going to use her half as a down payment on her new house.
Here’s my dilemma. I really LOVE the house I’m in. If it were up to me I’d stay in it. Is there a way I can take out a equity loan (up to what the house is worth now) give half to my wife and use the other half to pay off my loan and still come out without having to pay another monthly loan balance?
I’m not all that familiar with the different loan options available to home owners. Thanks!
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Tags: dilemma, divorce, equity loan, loan balance, loan options, sake, simplicity, student loans
January 1st, 2010 at 9:31 pm
There is no such thing as a loan that does not include monthly payments.
January 1st, 2010 at 9:31 pm
Absolutely. Let me break it down for you in laymen’s terms…
You can do this a few different ways, based on whatever makes the most sense.
First things first, you would refinance your home, and this is a must. The reason why you HAVE to refinance is to get your ex-wife’s name off of the loan.
During the process, the title company will handle the legalities as far as getting her off of the title. They will do what’s called a "quit-claim deed" removing her name from the title and giving you sole ownership (aside from the lien(s) from the mortgage.
Depending on your personal situation such as credit, income, assets, and liabilities, you will have to qualify for the mortgage on your own.
You can finance 100% of the value of your home, and there are a few different ways to structure the financing, either by doing a 100% finance all-on-one loan, or by splitting it up between a first and second to avoid paying PMI insurance. Your lender can explain the differences between loan programs.
In the divorce decree, since you are splitting the home down the middle, you should be re-imbursed for half of the cost to refinance the home.
You can take the cash-out (difference between the appraised amount and what you owe on the home including all costs to do the new mortgage) and give half to the Ex and take your share and pay down your outstanding debts.
For more information on this, please contact me directly at 866-799-3696, ask for Justin or my extension is 2006.
Good luck!
January 1st, 2010 at 9:31 pm
why dont you refinance the house under your name only and refinance it using a VA cash out refinance. If you do that, you can get the 25k out in equity, still be within VA parameters, pay off your ex, and keep the house. Not to mention… pay no PMI.