Basically, my wife and i are seperating but we own our own house...well through a mortgage company anyway. Including redemption penalties, we owe £103,000 back to the mortgage company. This doesn't include the estimated £3k in estate agent fees or solicitors. The house has just been valued at £100,000 so therefore we are approximately £6k short, in effect, it would cost us £6k to physically sell it. Therefore i have come up with the idea of buying her out of the property but am not sure how much i would need to pay her, if anything due to the fact we actually owe more than its worth....any suggestions????
Answer by Sharon B
Being upside down, who ever keeps the home...honestly should have the other person give them half of the cost, but that will not happen. If you really want the home show your wife the numbers and take it off her hands. In many cases the ex is so pissed they do something stupid and want to keep the fight going. It would be a gift for you to take it off her hands, but then she is stuck on the mortgage note. Being stuck on the mortgage not sucks for her. If the divorce is NOT final and you write it in the legal documents that you are taking full responsibility for the home she will be free to go on her merry way! If you are really not tied to tight to the house sell it on a short pay.
Answer by skr
Well on paper you owe her nothing because there is nothing to give, explain that you keeping the home will actually help her out because you will be left with the debt and she walk away free and clear. If, however she wants money then you have to ask yourself how much am I willing to pay to get her out of my life. I know that's not nice but it's the truth...
Answer by CatLover
Your buyout amount should be based on the current value of the home.
You should have it appraised to be sure.
If the appraised value is less than whats owed, divide the difference in half and deduct that from 1/2 the value and pay your wife that amount.
Example...lets say your figures turn out to be accurate, the debt is 106,000. If the appraised value is 100,000, then pay your wife 50,000-3,000 or 47,000.
Of course you have to get her to agree to all this too.
Make sure you get it all done legally thru and attorney.
Answer by Debdeb
Since you're talking about pounds, I'm guessing you're not in the US. I can tell you how it works here, but I don't know about anywhere else.
The only way to get her name off the mortgage is to refinance into your name only. That's going to be hard since there's negative equity in the home, i.e. you owe more than the value of the home. Even if a judge awards the home to you, the lender still considers her equally liable for the loan. Their arrangement was with both of you. It will stay on her credit until the loan is paid off, one way or another.
If there was equity, you would probably pay her half of the equity, and refinance into your own name. I wouldn't expect your lender to want to refinance, although it wouldn't hurt to ask them. I'm afraid you're both going to be stuck.
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Orignal From: How do you buy someone out of a mortgage?
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