Need advice from fresh thinkers

Hi I’m looking for advice or help and all of you are very knowledgeable on creatively handling real estate and all my creativity has just about dried up. Here’s my problem:
I’m currently going through the divorce, I am residing at the house and paying the mortgage. Now that child support has hit I can no longer afford to stay here. I’m unable to pay other bills. “Hemorrhaging severely” The house is in need of repair and I don’t have the time, money, or the skills to put into it. The mortgage has my wife’s name on it and her lawyer is requesting the home be refinanced or sold to get her out of the obligation. I can not refinance since this home requires repair. I can not just quit claim or rent out because that does not release her loan liability. I’ve listed it on Ebay for auction but I’m not sure this is the way to be going. The only thing that is a plus here is that it is a mountain home on a lake. Here’s what I’m looking at:

Mortgage: 154,000
Payments: 1228.00/month
Estimated Repair 20K
Assessed at 185,000 3 years ago
Comps : 220,000

I know there is something that can be done here but I am probably too stressed to see it. Any and all suggestions welcome. Thanks in advance. John

i may have missed something in your post, but why not just sell through a realtor and split the cash, or have her buy you out maybe?

either way, best of luck man

Okay, first things first. I’d suggest telling your ex-wife (or soon to be) attorney that you can’t afford to pay the mortgage NOW, so refinancing is not an option and unless she wants bad credit, too, it’s time for her to come to the table with some payments and a solution to the problem as well.

As to selling the house, I don’t see that you’re in such a bad position. Where is the property located? As jdeity said, what is preventing you from simply listing the house with a good local REALTOR? Even if you listed it at tax value of $185K, which is a good discount off of your comp price, a $12K commission still puts you at $173K, or a $19K profit. That’s $19K to split with your ex, to reduce the price to sell quick or to help pay for buyer’s closing costs, etc. If it’s in as good an area as it sounds, it should be able to sell in weeks with a good agent.

Other options: They are limited if you must get your ex off of the loan. However, I would venture to guess that if she must choose between bad credit or staying on the loan, that she may change her mind (or maybe not. That’s where most of my L/O tenants get their bad credit from: divorce).

If so, I’m pretty sure that you could find a local investor to take over the payments on thing. In fact, I’d suggest calling the “we buy houses” ads in your area and surrounding areas. It’s very possible that they may be willing to pay you the $155K to simply get rid of it.


The only thing keeping me from using a realtor is the 3 month average sale… I’m not going to make it that long. Thanks for the responses thus far… I have not found another investor that would pay off the mortgage… most just want the deed which is reasonable since this is what we learned to do… Works in most situations. Thanks All.


If your numbers are right, and the location is what you say it is, it shouldn’t take 3 months to sell this property, especially if you get a good REALTOR.

Even if it does, why would you not be able to make it for 3 months? Hey, if you don’t pay another mortgage payment, it’ll take 3 months before the lender evens starts threatening foreclosure. What’s better on your credit, a 30 to 90 day late pay or a full out foreclosure (in case anybody is wondering, take option ‘a’)?


Raj good advice… I guess i’ve just never been in any position where I would have to have any bad marks and it’s just a little hard to swallow.

Thank You,



If your figures are correct (especially the comps figure, showing ~$66k in equity), you could probably find an investor TODAY that will take this property off you and your wife’s hands - provided neither of you want much, if any, consideration from the deal. Shoot, I may even be interested if I knew more information. Of course, all this is considering (1) there is no order already in place that would “muddy the water” so-to-speak, and (2) if your wife is open to just washing her hands of the situation.

You also need to get your wife to make half the mortgage payments or her credit is going to get trashed.

Part of the settlement is she quit claims the house to me and she gets just about everything else… after I get that there will be no obsticles for any aproach with the home… As for her paying for anything… I think she’d pluck an eye out first. :wink: